Sterne Agee Lowers EPS Estimates on SanDisk

A report from Sterne Agee reiterates its Neutral rating and $55 PT, and lowers its FY11/12/13 EPS estimates from $4.60/$4.70/$5.94 to $4.56/$4.54/$5.73 on SanDisk SNDK. The report states, “While SNDK stock has pulled back significantly, we believe SNDK is facing some weaker demand at its key handset customers and from Europe. While SNDK has executed very well, we believe consensus up 10% q/q might be a high bogey given 1) Most of SNDK's handset customers, ~57% of revenues, are tracking to a flat C4Q11. Key Customer HTC also guided 4Q11 down ~25% q/q. 2) Our checks indicate Europe Retail flash card sales of ~14% of revenues, have not seen much holiday upside and are tracking flat to down 5% q/q for most flash card retailers.” SNDK closed yesterday at $47.74.