Nomura Securities Maintains a 'Buy' on SanDisk (SNDK); 4Q Review
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Price: $1,641.11 +7.39%
Rating Summary:
29 Buy, 18 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
29 Buy, 18 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Buy' on SanDisk (NASDAQ: SNDK) price target of $65.00.
Analyst, Sidney Ho, said, "SanDisk reported 4Q11 results that are mostly in line with our estimates. Revenue/EPS of $1.58bn/1.29 compares to our estimates of $1.57bn/$1.28 and consensus of $1.57bn/1.26. 2012 full-year revenue guidance of $6.2-6.6bn is below our previous estimate of $6.8bn (consensus $6.6bn), as 1H12 is negatively affected by weak demand from handset OEMs, as well as more aggressive pricing. Guidance for 2012 was worse than we expected, but comments from SanDisk support our view that there is significant growth potential in 2H12. Furthermore, a prudent capex plan is likely to drive further supply tightness. The company has a history of being conservative, and we would not be surprised if it ends up beating its guidance. We are lowering our 1Q12 EPS estimate from $1.15 to $0.90, and CY12 estimate from $5.80 to $5.00. Valuation at 7x P/E ex-cash is attractive. We recommend investors buy the dip."
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 $52.34 yesterday.
Analyst, Sidney Ho, said, "SanDisk reported 4Q11 results that are mostly in line with our estimates. Revenue/EPS of $1.58bn/1.29 compares to our estimates of $1.57bn/$1.28 and consensus of $1.57bn/1.26. 2012 full-year revenue guidance of $6.2-6.6bn is below our previous estimate of $6.8bn (consensus $6.6bn), as 1H12 is negatively affected by weak demand from handset OEMs, as well as more aggressive pricing. Guidance for 2012 was worse than we expected, but comments from SanDisk support our view that there is significant growth potential in 2H12. Furthermore, a prudent capex plan is likely to drive further supply tightness. The company has a history of being conservative, and we would not be surprised if it ends up beating its guidance. We are lowering our 1Q12 EPS estimate from $1.15 to $0.90, and CY12 estimate from $5.80 to $5.00. Valuation at 7x P/E ex-cash is attractive. We recommend investors buy the dip."
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 $52.34 yesterday.
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