Skip to main content

Market Overview

UPDATE: Credit Suisse Lowers Price Target On SanDisk Following Negative C4Q Preview

Share:

In a report published Tuesday, Credit Suisse analyst John W. Pitzer reiterated an Outperform rating on SanDisk Corporation (NASDAQ: SNDK), but lowered the price target from $105.00 to $100.00.

In the report, Credit Suisse noted, “SNDK negatively pre'd C4Q Rev/GM to $1.73bn (-1% q/q) /45% from prior mid-point of $1.83bn (+4.5% q/q)/48%, with implied EPS of $1.20 vs CS/Street of $1.52/$1.49, due to weakness in retail (35-40% of rev) and iNAND (10-12% of rev). Despite weak ASP trends in DecQ, we had thought iPhone6 builds would provide cushion, we were wrong. For 3rd consecutive Q we are lowering EPS for 1Q to $1.10 from $1.36 and for CY15 from $6.54 to $5.92 vs. Street of $6.62. While disappointing, C1Q is likely a trough with yen/$ benefit and better relative cost helping drive improvements in JunQ and 2H, driving 30% y/y cost reductions for SNDK versus 15% y/y for peers. We see trough valuation at 15 times CY15 EPS plus net cash and lower our TP to $100 from $105.”

SanDisk closed on Monday at $83.57.

Latest Ratings for SNDK

DateFirmActionFromTo
Mar 2016SusquehannaDowngradesPositiveNeutral
Mar 2016CitigroupMaintainsNeutral
Mar 2016CitigroupDowngradesBuyNeutral

View More Analyst Ratings for SNDK
View the Latest Analyst Ratings

 

Related Articles (SNDK)

View Comments and Join the Discussion!

Posted-In: Credit Suisse John W. PitzerAnalyst Color Price Target Analyst Ratings

Latest Ratings

StockFirmActionPT
GIKColliers SecuritiesInitiates Coverage On14.0
SANWLake StreetInitiates Coverage On6.0
LILAMorgan StanleyDowngrades15.0
BEJP MorganUpgrades36.0
NEXACredit SuisseUpgrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com