Cowen Starts SanDisk (SNDK) at Underperform
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Cowen & Co. initiates coverage on SanDisk (Nasdaq: SNDK) with an Underperform rating.
The firm believes SanDisk's premium valuation (currently trades at a 35% premium to the S&P 500 on its CY09 EPS estimate) is no longer justifiable and also feels that consensus estimates are too high given its exposure the the North American market.
Cowen expects manufacturing capacity and inventory levels to present a serious problem for SanDisk's NAND segment. The firm believes that NAND supply will remain too high into 2009, weighing on pricing and profitability.
SanDisk Corporation designs, develops, manufactures, and markets NAND-based flash storage card products that are used in various consumer electronics products.
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