Summit Modifies SanDisk Corporation Estimates Following Fusion-OI Acquisition

On Wednesday, analysts at Summit Research revised the investment thesis on shares of SanDisk Corporation SNDK.

Srini Sundararajan keeps the $87 price target and Hold rating on the stock, with modified estimates due to the recent acquisition of Fusion-OI Inc.

Sundararajan stated, “SanDisk expects the acquisition to be dilutive to non-GAAP earnings in the near term primarily due to charges for transaction, restructuring and integration costs, which are expected to be approximately $35M in 3Q14 and approximately $15M in 4Q14.

Revised estimates for the company:

"Revenue/non-GAAP EPS goes to $1.8B/$1.39 from $1.8B/$1.52 for calendar 3Q14. To $1.85B/$1.46 from $1.85B/$1.58 for calendar 4Q14. Calendar 2014 estimates to $6.8B/$5.70 from $6.8B/$5.95. Calendar 2015 estimates remain unchanged at $7.65B/$6.50."

Shares of SanDisk closed Wednesday at $93.37, up 1.9 percent.