The firm boosted the price target to $106 from $87 for the flash storage card products company.
Goldman Sachs raised annual EPS estimates to $6.30 from $5.75 for fiscal 2015, and to $6.80 from $6.70 for fiscal 2016.
"The continued weakening in the yen will likely be a positive for margins," said Goldman Sachs analyst Mark Delaney. "We believe SanDisk will guide 2015E margins above the Street on its 4Q call."
Separately, TheStreet Ratings team rates SANDISK CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SANDISK CORP (SNDK) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.8%. Since the same quarter one year prior, revenues slightly increased by 7.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Although SNDK's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average. To add to this, SNDK has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 53.68% to $587.70 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 35.84%.
- Compared to its closing price of one year ago, SNDK's share price has jumped by 37.22%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- SANDISK CORP's earnings per share declined by 7.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SANDISK CORP increased its bottom line by earning $4.37 versus $1.69 in the prior year. This year, the market expects an improvement in earnings ($5.81 versus $4.37).
- You can view the full analysis from the report here: SNDK Ratings Report