Nomura downgrades SanDisk (SNDK -2.3%) to hold on valuation grounds, leading shares to take a...


Nomura downgrades SanDisk (SNDK -2.3%) to hold on valuation grounds, leading shares to take a breather following a 38% YTD gain. Though granting SanDisk is benefiting from "disciplined" NAND flash supply growth and improving product mix, Nomura still sees potential risks, such as capacity additions from rivals, high capex due to technology transitions, and the potential for Samsung (SSNLF.PK) to gain an edge down the line from its lead in developing 3D NAND chips.
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Comments (1)
  • Russ Fischer
    , contributor
    Comments (3018) | Send Message
     
    The stock has a fair value of about $50, so it is overpriced. the problem is that they are painted into a corner on growth. No more capacity coming on short term. The 3D issue isn't worth worrying about. Toshiba is thought to have a good line on 3D.
    Micron, backed by Intel might be more of problem for Sandisk and Samsung on 3D NAND.
    20 May 2013, 02:15 PM Reply Like
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