UPDATE: Goldman Sachs Raises PT to $58 on SanDisk Corporation on Gross Margin Upside

Goldman Sachs maintained SanDisk Corporation

with a Buy rating and raised the price target from $52.00 to $58.00. Goldman Sachs analyst James Schneider wrote, "We are increasing estimates on SanDisk based on stronger NAND market pricing trends and further depreciation of the Japanese yen. We have also performed a series of sensitivity analyses to help bind potential earnings upside given fluctuations in both these factors over the course of 2013. Our base case assumption is for gross margin of 44% for 2013, based on a 15% yoy ASP decline in 2013 and a 4Q13 exchange rate of 96 – which translates to 2013 EPS of $4.10. Our upside case is for gross margin of 46.5% for 2013, based on slightly stronger pricing in 2013 and a 4Q13 exchange rate of 100 – which translates to 2013 EPS of $4.55." SanDisk Corporation closed at $54.44 on Wednesday.