SanDisk Less Ugly, Says Cowen; Upgrades To Neutral

Has the great SanDisk (SNDK) sell off peaked? Maybe. Cowen’s Daniel Berenbaum this morning upgraded the stock to Neutral from Underperform, noting that with the stock down 76%, the stock is “approaching levels where, absent a significant worsening of already horrific fundamentals or a failure of restructuring actions, many investors could reasonably see valuation support.” This is not to say he would buy the stock: he wouldn’t. His advice: wait to see memory fundamentals improve and for signs that the company’s cost-cutting moves are working. He thinks those events aren’t likely before mid-2009 at the earliest. Berenbaum sees industry over supply through the better part of 2009, with “limited” profitability for all players. SNDK today is up 23 cents, or 2.9%, to $8.16. (link)