Nomura Securities Downgrades SanDisk (SNDK) to Reduce; Shares headed to Mid-$60s

Nomura Securities downgraded SanDisk (NASDAQ: SNDK) from Neutral to Reduce with a price target of $65.00 (from $70.00).

Analyst Romit Shah commented, "We believe product mix can only worsen, and this is not discounted in consensus estimates for gross margin, EPS and the multiple. SanDisk might be oversold into earnings on Wed., but a short-term high isn’t worth the low, as we see the stock heading into the mid $60s."

The firm is forecasting EPS of $5.68 in CY15 and $6.25 in CY16, based on mid single digit revenue growth and gross margin of 46-47%. The firm's estimates are below consensus of $6.09 in CY15 and $6.81 in CY16.

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 $78.93 yesterday.

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