RBC Capital Maintains an 'Outperform' on SanDisk (SNDK); Takeaways From Meeting With Mgmt

June 1, 2012 10:35 AM EDT
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Price: $76.18 --0%

Rating Summary:
    13 Buy, 29 Hold, 4 Sell

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RBC Capital maintains an 'Outperform' on SanDisk (NASDAQ: SNDK).

Analyst, Doug Freedman, said, "SNDK has an authorized $500mil plan (started 4Q11) of which only $4mil was used in 2011. In total, $150mil has been used since the program started with $84mil in roughly the last month."

"Retail pricing has been, and continues to be, soft. The company confirmed that spot market pricing for lower density retail 3-bit has firmed in the last week. As a result of the industry-wide oversupply, SNDK has seen a wider than normal range of prices from the low-end 3-bit per cell to the higher SSD quality 2-bit per cell and embedded eMMC products."

All In, Freedman, said, "Our take-away is that while we are longer-term positive on SNDK being able to benefit from secular growth drivers, in the near-term we believe new money should wait for pricing trends to show a positive upward movement which is required for margin upside."

For an analyst ratings summary and ratings history on SanDisk click here. For more ratings news on SanDisk click here.

Shares of SanDisk closed at $32.70 yesterday.

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