NEW YORK (TheStreet) -- Pacific Crest downgraded SanDisk Corp.  (SNDK) stock to "sector weight" from "overweight" and maintained its $81 price target.

The Miliptas, CA-based company provides flash storage solutions.

The downgrade is due to the company's impending merger with data store solutions company Western Digital Corp. (WDC).

If the merger falls through, the company could trade toward the mid-$50s, the level SanDisk was when the deal was announced, Pacific Crest said.

"We like the SNDK/WDC merger...For Western Digital, it removes an overhang from flash impact on hard disk drives (HDDs). Western Digital would then own the best flash assets and supply for its solid-state drive (SSD) business," the firm said in an analyst note.

Twenty of the top 25 Western Digital investors are also investors in SanDisk, Pacific Crest noted. They will likely vote in favor of the deal as it makes strategic sense for both companies, the firm added.

Pacific Crest said it is a buyer of Western Digital. It has an "overweight" rating and $100 price target on the stock.

Shares of SanDisk are up 0.96% to $72.77 in pre-market trading on Monday.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.

The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins.

As a counter to these strengths, the team also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

You can view the full analysis from the report here: SNDK

SNDK Chart SNDK data by YCharts