Morgan Stanley analyst Joseph Moore published a report on SanDisk SNDK that reiterated its Overweight rating and raised the price target from $55 to $60.
Morgan Stanley reported that, “Despite pricing strength, wafer start growth and
shrink activity remains remarkably slow. Several
structural elements are leading to this slow supply
growth environment, including distractions at most
NAND producers dealing with foundry and DRAM,
capital intensity issues driving more expensive shrinks,
increasing demand for trailing edge technology within
SSD applications, and looming technology barriers to
NAND shrinks. We expect some moderate transition of
supply from DRAM to NAND, and some new production
additions to be announced in the coming quarters, but
expect overall supply growth to remain sub 40% in 2013
and 45% in 2014, key to our bullish view.”
Shares of SanDisk closed at $53.76 on Tuesday.
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