Jefferies Upgrades SanDisk (SNDK) to Buy; Low Bar, Low Downside Risk

Jefferies upgraded SanDisk (NASDAQ: SNDK) from Hold to Buy with a price target of $47 (up from $45).

The firm comments, "Street NTM EPS estimates have been cut by 60%, and SNDK has underperformed the SOX by 3,800 bps YTD. We think product mix and NAND price improvements are likely to drive higher CY12 gross margins of 36% (vs. Street's 31%) and position SanDisk to jump over a very low bar. Also, with ~$15/sh in net cash and investments, and a stable IP business, we think downside risk is low."

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 $37.40 yesterday.

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