UPDATE: Credit Suisse Reiterates Outperform Rating, Lowers PT on SanDisk Corporation Following Negative C4Q Preview

In a report published Tuesday, Credit Suisse analyst John W. Pitzer reiterated an Outperform rating on

, 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 Corporation closed on Monday at $83.57.