SanDisk Not Giving Up

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SanDisk Corporation SNDK was rated Neutral by Vijay Rakesh of Mizuho Securities along with a price target of $74. The stock recently traded at $67.40, about 10 percent away from the analyst’s rating. The company has declined nearly 35 percent in the recent six months.

 

Rakesh pointed out that SanDisk has been struggling, but is indeed re-organizing their strategy. He notes that “We believe undoubtedly, SNDK is the leader in NAND flash and

has had a wide margin in process and design technology.” Vijay still considers SanDisk a leader in technology likewise operating margins. A

 

Though the Mizuho analyst believes Samsung has yet to add “significant capacity in 3D-NAND,” he visions an opportunity for SanDisk to step in and innovate the marketplace.

 

Despite the fact that Vijay considers SanDisk a leader in the tech sector, he also detects risks for the company:

  • Slow demand growth in the “retail and handset NAND market”

  • Increased competition from Samsung, Micron, and Hynix

  • SanDisk’s 70% of royalties contract(from Samsung) is up for renewal in August of 2016
Posted In: Analyst ColorPrice TargetInitiationAnalyst Ratings
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