Morgan Stanley Upgrades SanDisk To Overweight

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Analysts at Morgan Stanley upgraded shares of SanDisk Corporation SNDK to Overweight from Equalweight on Friday with a new price target of $115 from $110.

Analysts have been impressed by Sandisk’s earnings performance, willingness to return cash to shareholders, and the capabilities the company has built in the higher margin enterprise sector.

Joseph Moore stated,”we are using the recent relative under performance to move back to overweight.” The new price target of $115 is based on a 14 times multiple on 2015 estimates. The increase in price target is partly driven by increased conviction in a more sustainable earnings stream, as Sandisk significantly out earns peers.

In addition, analysts also see a stronger pricing environment in NAND is likely to last longer than originally anticipated. Moore stated,” We think Apple could signal higher NAND content for the iPhone 6.”

Shares of SanDisk recently traded at $97.50 up 1.3 percent Friday morning.

Posted In: UpgradesAnalyst RatingsJoseph MooreMorgan Stanley
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