Conflicting Analyst Views Plague Data Storage Stocks (SNDK, EMC, NTAP, WDC, STX, OCZ)
Shares of SanDisk (SNDK), the maker of NAND-based flash storage card products, are faltering by 4% after Stifel pared its price target on the stock to $63 from $72, saying the they expect lower ASP estimates for the second and third quarters due to weakening consumer demand. The new price target still offers substantial upside from where SanDisk currently trades. The research firm said it expects ASP declines to slow starting in September due to an increase in seasonal demand, greater adoption of solid state drives and a slowing of capacity increases. Stifel maintains a “buy” rating on SanDisk.
SanDisk’s woes may be one culprit behind the slide in the Data Storage Stock Index, which is down 2.2%. On the other hand, Gleacher is more bullish on SanDisk, saying it expects the company to report slightly strong than expected second quarter results. While reiterating a “buy” rating on SanDisk, Gleacher said the stock’s valuation is attractive and that it expects SanDisk to post a strong second half of 2011 while noting margins will remain healthy next year.
Shares of EMC (EMC), the largest data storage provider, are off 1% despite Pacific Crest Securities saying the stock should be bought on weakness. The research firm said it doesn’t expect EMC’s second-quarter results to provide a major catalyst for the stock, but said EMC’s risk/reward is favorable this year and that the stock could see $40 over the long-term. That’s well above where the shares currently trade.
Investors can track the Data Storage Stock Index for performance trends and a suite of other metrics at tickerspy.com.
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SanDisk Corp. (NASDAQ: SNDK): Q1 2011 Earnings Roundup (Stock Wizard, 4/21/11)
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