UPDATE: BTIG Initiates Coverage On SanDisk

In a note Tuesday morning, analysts Walter Piecyk and Joseph Galone of BTIG Research initiated coverage on SanDisk Corporation SNDK with a Buy Rating and a $123 price target.

The analysts believe the demand for memory in data centers and end-user devices is yet another way to invest in the growth of data and as a result have launched coverage on SanDisk, a leading supplier of NAND memory.

The analysts also feel data growth and ultimately storage is in part being driven by the rising consumption of digital media on wired and wireless networks, noting that trends have delivered volatile results in the memory space in the past. They believe the strong demand trends and a more stable supply environment will offer relief from the over-supply cycles of prior decades.

According to the note, "SanDisk is uniquely positioned to benefit from these favorable industry supply/demand trends given its value added memory solutions and diversity of products which result in industry leading margins. Our $123 price target is based on 17x our Fiscal 2015 EPS estimate of $7.25, which represents 20.5% growth over the prior year."

Shares of SanDisk are slightly higher in pre-market trading at $97.90, implying a 26 percent upside to the $123 price target.