BTIG Heads to Sidelines on SanDisk Corporation; Slashes Price Target
In a research report issued today, BTIG analyst Walter Piecyk downgraded shares of SanDisk Corporation (NASDAQ:SNDK) to Neutral rating and reduced the price target to $70 (from $123), which reflects a potential downside of 14% from last closing price. The decreased rating and price target come after the company cut its first fiscal quarter revenue forecast, sending shares plunging 17 percent.
Piecyk noted, “The minimal amount of information provided by the company whenever it pre-announces as well as its inability to provide additional information for weeks until it actually reports the quarter leave investors in a vacuum with a lack of information. This leads to greater risk in investing in the company and should merit a lower multiple, for the foreseeable future.”
Furthermore, “The Q1 pre-announcement implies 15% decline in revenue and in the absence of any additional information, we do not expect the company to return to revenue growth until 2016, when its newer SSD products should be hitting full stride. Lower growth expectations should merit a lower multiple, but can be reversed as growth returns.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Walter Piecyk has a total average return of 13.1% and a 65.2% success rate. Piecyk has a -18.3% average return when recommending SNDK, and is ranked #847 out of 3547 analysts.