SanDisk -3.1%; BofA downgrades, cites capex/pricing trends

• Less than a month after upgrading SanDisk (SNDK) to Buy in response to its Q2 beat and in-line guidance, BofA/Merrill has issued a two-notch downgrade to Underperform.
• The firm argues recent memory industry capex hikes suggest a lack of discipline - Micron (NASDAQ:MU) recently set a higher-than-expected FY16 (ends Aug. '16) capex budget of $5.3B-$5.8B, and SK Hynix (OTC:HXSCF) stated yesterday it's considering making $39B worth of new fab investments.
• BofA also points points out recent memory spot price corrections indicate major players continue to compete aggressively, in spite of industry consolidation.
• SanDisk has dropped to $56.37 premarket. The 52-week low is $53.18.