Deutsche Bank Sees Solid 3Q For SanDisk Corporation

Deutsche Bank issued a 3Q Preview for SanDisk Corporation SNDK on Tuesday and expected a "solid quarter and guidance."

Analysts Sidney Ho and Ross Seymore expected Sandisk to "report inline to slightly better 3Q results relative to DBe revenue/EPS of $1.73b/$1.24. The pricing environment in 3Q was healthy (flat contract price q/q) given strong demand pull from Apple iPhone build."

The report expected SanDisk "to guide at or above DBe revenue of $1.88b (cons at $1.86b) for 4Q14. Upside should come from higher bit shipments (vs. DBe +8% q/q), which should take inventory days even lower than 2Q of 78 days. While bit shipment upside driven by Apple generally means lower margins, we believe the increasing mix of TLC shipped to Apple will provide an offset."

Ho remained "positive on Sandisk for the intermediate term despite near-term volatility."

The firm reiterated its Buy rating and $110 price target while Summit recently modified its estimates.

SanDisk will report 3Q 2014 results after the market close on Thursday, October 16.

SanDisk recently traded at $83.85, up 1.3 percent.