Goldman Sachs Upgrades SanDisk (SNDK) to Buy On Supply Pushouts
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Price: $58.25 -0.38%
Rating Summary:
18 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
18 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade SNDK Now!
Goldman Sachs upgraded SanDisk (NASDAQ: SNDK) from Neutral to Buy with a price target of $45, suggesting 24% upside.
The firm sees an attractive entry point as supply pushouts should drive margins and stock higher.
For their upgrade, the firm cited: "(1) Post NAND industry oversupply and price pressure through 3Q12, we expect a return to supply/demand balance by 4Q12 as we believe suppliers such as Samsung and Hynix are pushing out capacity expansion and shifting some NAND capacity to logic; (2) We expect modest gross margin expansion for SanDisk in 2H12 given tighter supply dynamics; (3) Long term, we see outsized SSD exposure for SanDisk relative to peers; (4) Valuation has become compelling with the stock trading at just 5X 2013E product earnings (given $15 in net cash/share plus $12 in royalty value)."
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 $36.36 yesterday, with a 52 week range of $30.99-$53.46.
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The firm sees an attractive entry point as supply pushouts should drive margins and stock higher.
For their upgrade, the firm cited: "(1) Post NAND industry oversupply and price pressure through 3Q12, we expect a return to supply/demand balance by 4Q12 as we believe suppliers such as Samsung and Hynix are pushing out capacity expansion and shifting some NAND capacity to logic; (2) We expect modest gross margin expansion for SanDisk in 2H12 given tighter supply dynamics; (3) Long term, we see outsized SSD exposure for SanDisk relative to peers; (4) Valuation has become compelling with the stock trading at just 5X 2013E product earnings (given $15 in net cash/share plus $12 in royalty value)."
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 $36.36 yesterday, with a 52 week range of $30.99-$53.46.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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