- Thomas Weisel Partners has some positive things to say about Sandisk (NASDAQ:SNDK) after spending time with co's management.
Firm's key takeaways are 1) Sandisk's cost per MB is likely to improve significantly in the coming quarters, 2) the pending M-Systems acquisition should have significant synergies and improve Sandisk's flash sourcing and/or royalty position, in firm's view, and 3) Sandisk appears confident it will be able to utilize MLC flash in the emerging SSD-based notebook market. Sandisk refrained from comments regarding short-term trends but acknowledged that Apple order activities at major flash vendors will have a significant impact on price stability for the duration of 2006. TWP continues to believe Sandisk is well positioned for significant long-term growth.
Firm reiterates their Outperform rating on the shares of Sandisk and view the acquisition as a near-term and long-term positive: 12-month $100 price target is based on 33x 2007 EPS estimate of $3.03 and a 1.25x PEG ratio on expected 26% EPS growth in 2007, which they believe is reasonable given Sandisk's leadership position in the flash memory industry and
likelihood of further positive estimate revisions.
Notablecalls: Back at my old trading desk I would be all over SNDK, pushing it higher in the pre mkt to dump the thing after the open. Think SNDK can move up today.
Firm's key takeaways are 1) Sandisk's cost per MB is likely to improve significantly in the coming quarters, 2) the pending M-Systems acquisition should have significant synergies and improve Sandisk's flash sourcing and/or royalty position, in firm's view, and 3) Sandisk appears confident it will be able to utilize MLC flash in the emerging SSD-based notebook market. Sandisk refrained from comments regarding short-term trends but acknowledged that Apple order activities at major flash vendors will have a significant impact on price stability for the duration of 2006. TWP continues to believe Sandisk is well positioned for significant long-term growth.
Firm reiterates their Outperform rating on the shares of Sandisk and view the acquisition as a near-term and long-term positive: 12-month $100 price target is based on 33x 2007 EPS estimate of $3.03 and a 1.25x PEG ratio on expected 26% EPS growth in 2007, which they believe is reasonable given Sandisk's leadership position in the flash memory industry and
likelihood of further positive estimate revisions.
Notablecalls: Back at my old trading desk I would be all over SNDK, pushing it higher in the pre mkt to dump the thing after the open. Think SNDK can move up today.
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