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Was The Move In SanDisk Shares On Thursday Overdone?

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SanDisk Corporation (NASDAQ: SNDK) lost more than 18 percent on Thursday on back of the company cutting its quarterly revenue forecast. On the same day, BTIG analyst Walter Piecyk downgraded the stock to Neutral and reduced his price target from $123 to $70.

Piecyk was on CNBC recently to explain the reasons for the downgrade and whether the decline was overdone.

More About SanDisk

"Our call is more about SanDisk specifically, but certainly there's not a tremendous amount of strength in the market obviously," Piecyk said.

"It's easier to perform when there's excessive growth, but in this case, it's probably more about SanDisk's execution and whether the products are really differentiated enough to drive some revenue growth."

Investors In A ‘Vacuum'

Piecyk was also asked if the move in SanDisk shares on Thursday was overdone.

Related Link: SanDisk Cuts Revenue Forecast, Shares Plummet

He replied, "Tech is always tough, right? When you start missing on revenue and earnings, we don't know where the margin is, the company has kind of left investors in a vacuum. They are not going to talk about anything until April 15. They have very high margins -- 27 percent historically."

He added: "Now we are down to expecting 17 percent, but their competitor in this space Micron (Technology Inc.), who I don't think has great products, but they have much lower margins.

"So, we are in a kind of no man's land on earnings...not really knowing where those earnings are going to settle in; I think makes it difficult for people to kind of find the bottom for the stock," Piecyk concluded.

Latest Ratings for SNDK

Mar 2016SusquehannaDowngradesPositiveNeutral
Mar 2016CitigroupMaintainsNeutral
Mar 2016CitigroupDowngradesBuyNeutral

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Posted-In: btig Sandisk revenue forecast Sandisk stock Walter PiecykAnalyst Color CNBC Analyst Ratings Media


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