SanDisk (SNDK) Shares Tumble as Sterne Agee Makes Valuation Call, Downgrades to Neutral

Shares of SanDisk (Nasdaq: SNDK) are down about 5 percent Monday morning following an earlier downgrade from Sterne Agee. The firm's Vijay Rakesh now rates the stock a Neutral, down from Buy previously. Rakesh's price target was reduced from $66 to $58.

The Sterne Agee analyst cited valuation, noting SanDisk shares rose as much as 32 percent since the beginning of October and about 65 percent since the 52-week low set near the end of August.

Rakesh believes investors in the stock have now priced in "most of the upside..." which could come from near-term positives related to NAND memory and hard-drive storage. In addition, Rakesh said output of NAND memory usually hits a top near the end of November, leading to decline prices moving into the new year.

With SanDisk shares last trading at $50.51 in early-afternoon trade Monday, Sterne Agee's new price target suggests potential upside of about 15 percent.

Visit our Analyst Ratings page to track all the market-moving analyst calls on shares of SanDisk.

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