Goldman Sachs Maintains Bullish View on SanDisk (SNDK) Following CFO Meeting, Says Buy the Stock
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Price: $1,596.08 -0.28%
Rating Summary:
29 Buy, 18 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
29 Buy, 18 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Goldman Sachs reiterated its Buy rating and $51 price target on SanDisk (NASDAQ: SNDK) following a meeting with the CFO which reinforced their bullish view on NAND supply/demand.
Based on the meeting, Goldman believes SanDisk's 2011 sales guidance of $5.6-5.7 billion is still on track. The macro uncertainty is prompting management to postpone further capacity expansion and other suppliers are also taking a more cautious approach. In addition, while 2012 gross margin will be hit by Yen FX, this could be partly offset by lower Fab 5 startup costs.
Goldman also said smartphone OEM's continue to expand NAND content despite ongoing ASP pressures and while management remains guarded on capital allocation, it is comfortable operating at a lower cash balance.
Net-net, Goldman's analysts said they would buy the stock today.
For more ratings news on SanDisk click here and for the rating history of SanDisk click here.
Shares of SanDisk closed at $34.35 yesterday.
Based on the meeting, Goldman believes SanDisk's 2011 sales guidance of $5.6-5.7 billion is still on track. The macro uncertainty is prompting management to postpone further capacity expansion and other suppliers are also taking a more cautious approach. In addition, while 2012 gross margin will be hit by Yen FX, this could be partly offset by lower Fab 5 startup costs.
Goldman also said smartphone OEM's continue to expand NAND content despite ongoing ASP pressures and while management remains guarded on capital allocation, it is comfortable operating at a lower cash balance.
Net-net, Goldman's analysts said they would buy the stock today.
For more ratings news on SanDisk click here and for the rating history of SanDisk click here.
Shares of SanDisk closed at $34.35 yesterday.
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