S&P Capital IQ Reiterates its BUY Rating on Sandisk

October 24 00:00 2011

New York, October 24 (RainbowNewsLine.com) – Analyst Angelo Zino of S&P Capital IQ reiterates his BUY rating on the shares of Sandisk (NASDAQ: SNDK), while reducing his estimates for the company. The 12-month target price is set to $58.

Analyst Angelo Zino, in a research report published on October 22, mentions that the company reported its Q3 EPS results short of the estimates, which includes a $12 million loss related to a debt repurchase. Sandisk’s Margins slowed down due to the lower pricing and less favorable mix. The company’s sales grew 3% from Q2, while gigabytes sales grew 18% but were partly offset by a 13% drop in pricing. The growth trends for the company remains intact as there will be cost reduction from the launch of 19nm technology in Q4, the analyst adds. The EPS estimate for 2011 has been reduced from $4.18 to $3.93.