Company Update (NASDAQ:SNDK): SanDisk Corporation and SK Hynix Announce Expanded IP and Commercial Relationship; Settle Outstanding Trade Secret Litigation

SanDisk Corporation (NASDAQ:SNDK), a global leader in flash storage solutions, today announced it has reached agreement with SK Hynix, Inc. to modify and extend their intellectual property licensing relationship and enter into a multi-year commercial relationship under which SK Hynix will supply its leading-edge DRAM products to SanDisk. These agreements include a settlement of the trade secret misappropriation suit filed by SanDiskin 2014.

Under these agreements, which will expire on March 31, 2023, SanDisk will release SK Hynix of its liability pertaining to the trade secret litigation and license certain intellectual property rights to SK Hynix in exchange for license and royalty payments to be made over the duration of the agreement. In addition, SK Hynix has agreed to supply SanDisk with certain volumes of its DRAM products for MCP and SSD applications. The specific terms and conditions of the agreements, including with respect to economic consideration, are confidential.

“We are pleased to have reached this important settlement and to expand our commercial relationship with SK Hynix. We believe this resolution acknowledges the value of our intellectual property while providing SanDisk access to DRAM solutions desired by our customers for their mobile and SSD applications for many years to come,” said Sanjay Mehrotra, president and chief executive officer of SanDisk.

“We believe this resolution is positive for both SK Hynix and SanDisk and our customers. We look forward to this renewal and extension of our business collaboration with SanDisk,” said Dr. Sung-Wook Park, president and chief executive officer of SK Hynix. (Original Source)

Shares of SanDisk closed yesterday at $59.46. SNDK has a 1-year high of $106.64 and a 1-year low of $53.18. The stock’s 50-day moving average is $59.03 and its 200-day moving average is $69.40.

On the ratings front, SanDisk has been the subject of a number of recent research reports. In a report issued on July 23, B. Riley analyst Craig Ellis upgraded SNDK to Buy, with a price target of $75, which represents a potential upside of 26.1% from where the stock is currently trading. Separately, on the same day, Merrill Lynch’s Simon Woo upgraded the stock to Buy and has a price target of $75.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Craig Ellis and Simon Woo have a total average return of 14.9% and 15.1% respectively. Ellis has a success rate of 61.2% and is ranked #493 out of 3724 analysts, while Woo has a success rate of 47.1% and is ranked #1021.

Overall, 2 research analysts have rated the stock with a Sell rating, 9 research analysts have assigned a Hold rating and 8 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $69.92 which is 17.6% above where the stock closed yesterday.

SanDisk Corp designs, develops and manufactures data storage solutions using flash memory, proprietary controller and firmware technologies.

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