UPDATE: Morgan Stanley Reiterates On SanDisk Corporation On Mixed Factors

In a report published Friday, Morgan Stanley analyst Joseph Moore reiterated an Overweight rating on

, but lowered the price target from $115.00 to $109.00. In the report, Morgan Stanley noted, “These are the problems that come with a supply constrained environment. With slightly slower than expected production growth, the company will be on allocation on several products in 4Q due to limited supply growth, which constrains revenue, and margin upside will be limited by previously agreed upon commitments to customers and normal 4Q retail promotions. We would have liked to see upside, but we think these tight conditions are indicative of the broader supply growth challenge that set us up for an improved NAND environment in 2015 wherein gross margins can gradually climb. We see earnings of $7 and a $109 stock price next year.” SanDisk Corporation closed on Thursday at $85.31.