Deutsche Bank Downgrades SanDisk (SNDK) to Hold

Deutsche Bank downgraded SanDisk (NASDAQ: SNDK) from Buy to Hold with a price target of $65.00 (from $80.00). The change follows Q1 results and guidance. Analyst Sidney Ho doesn't think there is a short term fix for the company's problems.

"SNDK gave a conservative outlook as we expected, but the factors that impacted the business do not seem to be able to resolve in the near term. We are particularly disappointed with the enterprise SSDs business, which was the primary reason for our bullish call. While SNDK laid out plans to fix these issues, its revenue target for the second half of 2015 is by no means easy to achieve. Trading at 16x our revised 2016E EPS of $4.50, the risk-reward does not seem compelling. We would wait to see progress on the execution front before we get more constructive. As such, we downgrade SNDK to Hold," said Ho.

For an analyst ratings summary and ratings history on SanDisk click here. For more ratings news on SanDisk click here.

Shares of SanDisk closed at $71.12 yesterday.

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