UPDATE: Bank of America Reduces PO to $56 on SanDisk Corporation on Bottom Ahead of NAND Recovery

Bank of America reiterates its Buy rating on SanDisk Corporation

, but reduces its price target from $65 to $56. Bank of America notes, "Conservative guidance from handset makers (even Samsung) suggests downside to NAND demand, and the decline in NAND spot price was more than usual in April-May. However, we model mid- to up-cycle levels of operating profit in 2H12 and 2013-14 for Sandisk due to supply constraints at competitors and new chip demand (eg, SSD for Apple's MacBook Pro). SanDisk remains one of our top memory picks globally given its high margins from 2H12, net cash, FCF generation and tech leadership." SNDK closed at $35.55 on Thursday.