Citigroup Upgrades SanDisk; Sees M-Systems Also 'Positioned To Benefit' From Current NAND Market (SNDK, FLSH)

Includes: FLSH, WDC

SanDisk shares got some relief from their recent backslide this morning, after Citigroup analyst Craig Ellis upgraded the flash memory maker to "Buy" from "Hold," and lifted his 12-month share price target to $69 from $57. He also increased earnings projections for 2005 and the following two years. Says Ellis:

While we had previously been positive on longer-term fundamentals, the analysis increases our confidence even further that strong NAND demand will press industry's supply capabilities despite the recent emergence of new entities with growing market share... Positioned to benefit are NAND manufacturers or vertically integrated product players such as SanDisk, and secondarily fabless companies with IP and guaranteed supply agreements such as M-Systems (FLSH)

SNDK 1-yr chart:

FLSH 1-yr chart:

Full disclosure: Editor is long FLSH at time of this post