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Analysts Harsh On SanDisk's Q1 Suffering


SanDisk Corporation's (NASDAQ: SNDK) disappointing dip in first-quarter earnings and an outlook below expectations sparked a raft of downgrades and sent the company's shares down nearly 5 percent.

At least four downgrades came reportedly from Credit Suisse, Citigroup, Susquehanna and Raymond James.

John W. Pitzer of Credit Suisse said he's bullish on the sector, but worries that SanDisk's high-end technology is at risk of getting left behind by competitors, while at the lower end, customers like Apple Inc. (NASDAQ: AAPL) are shifting to commodity products.

Both BMO Capital Markets and Baird maintained Hold ratings on SanDisk Thursday, citing a shifting competitive landscape and unabated pricing competition.

Morgan Stanley's Joseph Moore maintained an Overweight rating on SanDisk but said results were "worse than we thought."

Despite a "mildly improving" market for its products, SanDisk is struggling with poor inventory management, product problems and "a delayed reaction" to falling prices, according to Moore, who reduced his price target 12.5 percent to $80.

Stifel and Jefferies maintained Buy ratings, although Stifel's Kevin E. Cassidy cut his target on SanDisk 10 percent to $75.

Sandisk problems are "fixable, but probably not within the next six months," according to Cassidy, who also slashed his 2015 earnings estimate by 63 percent to $0.30 a share.

Latest Ratings for SNDK

Mar 2016SusquehannaDowngradesPositiveNeutral
Mar 2016CitigroupMaintainsNeutral
Mar 2016CitigroupDowngradesBuyNeutral

View More Analyst Ratings for SNDK
View the Latest Analyst Ratings


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Posted-In: Baird BMO Capital Credit Suisse John W. PitzerDowngrades Price Target Reiteration Analyst Ratings

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ENTGUBSInitiates Coverage On120.0
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