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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (50465)	12/21/2010 11:27:26 AM
From: Donald Wennerstrom	1 Recommendation Respond to of 95383

Dec 21, 2010 10:10 AM SanDisk: Raymond James Says Buy On Tablet Growth Posted by Tiernan Ray Shares of SanDisk (SNDK) are up $1.62, or 3%, at $50.78 after Raymond James analyst Hans Mosesmann raised his rating on the stock to Outperform from Market Perform, writing increased demand from tablet computer use of solid-state drives should offset the effects of a build-up of supply in the NAND flash memory market. Computer industry estimates of tablet computer unit shipments of 50 million next year are likely “conservative,” Mosesmann argues. Apple (AAPL), with its iPad, has really shifted the market from looking at NAND just on price to considering performance as well, which is good for sustaining prices and profits for SanDisk and others. The advent of Google’s (GOOG) Android operating system’s “Honeycomb” version, which is supposed to be better for tablet computers, could boost those numbers, he writes. An incremental 25 million tablets, carrying solid-state NAND-based drives in the 32 gigabyte to 64 gigabyte range would add $150 million in revenue to SanDisk’s sales next year, he estimates. SNDK shares are “quite reasonable” at a mid-teens P/E multiple, he thinks, based on his 2012 EPS estimate of $4.18, and he assigns a $63 price target.