Conclusion: We reiterate our OW thesis and raise
price target to $42 based on gross margin pside driven by stable product pricing and ~300bps of share gains at handset/tablet OEMs like AAPL this year. Our FY10/11 estimates remain 20%/38% above consensus. We assume multiple expansion (13 x CY10 EPS versus 12 x previously) given our belief that tablet PCs could generate 8x more NAND demand than notebooks.
Preview: SNDK reports 1Q results on April 21, 2010.
We expect company to hit high end of the revised
guidance and are modeling revenues/EPS of
$1.1B/$0.70 versus consensus of $977MM/$0.57. Our proprietary SNDK pricing tracker shows 1Q pricing down ~3% and 2Q flat to up so far. We assume bit growth down 12%/up 14% in 1Q/2Q respectively.
Said earlier that this was a manipulation by Pacific, they somehow had to get their shorts an opportunity to cover before the MS report came out. Its a shame so many get hurt by these rogue companys like Pacific. Oh and where's the SEC, too busy w/GS and trying to kill every co. on wall st.??? Give us a break, its all political.