These Analysts Just Slashed Their SanDisk Price Target

Credit Suisse reviewed SanDisk Corporation SNDK after the semiconductor company lowered its revenue forecast for its fiscal first quarter from $1.4-1.45 billion to $1.3 billion. The company also withdrew CY15 guidance.

Credit Suisse analysts lowered their price target from $90 to $75, but maintained an Outperform rating.

"We continue to believe that SanDisk has the best cost reduction roadmap...for SanDisk to lower cost by 30 percent year over year in 2015 versus 15 percent for peers," they wrote.

The company, analysts added, revealed the earnings miss was due to three factors:

1. Lower-than-expected sales of enterprise products.
2. Lower pricing in certain areas of business.
3. Qualification delays.

Overall higher-margin retail business is declining as more phones are being launched with SSD. This has caused competitors to lower prices as well. The analysts believe that SanDisk is well positioned to compete in the 3D NAND market segment when it enters that area.

SanDisk Corporation closed Thursday at $66.20.