SanDisk (SNDK) Downgraded: No Demand For Storage Right Now

Citi was hoping macro trends such as rising contract pricing would power SanDisk (SNDK), . However, “under-supply is not emerging” and the “recent demand weakness” is undermining this thesis.  So they’ve cut the stock:

Bulls will push “cheap” valuation and a potential 3Q08 contract up-
tick but:

  • company-specific C2H08 bit growth, inventory, and GM risks are growing
  • the stock’s seasonal peak is nearing
  • buyers are likely to sell strength ahead of late-C08’s pricing and stock risks

Citi downgrades SanDisk (SNDK) from Buy to HOLD, target price from $35 to $27.

See Also:
SanDisk (SNDK): Citi Says “Buy” After CEO Comments Crush Stock

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