(SNDK) SanDisk Corporation – Bull of the Day

SanDisk (SNDK) has a strong product portfolio and is a significant player in the U.S. flash memory market. The company posted robust first quarter 2010 numbers, exceeding the Zacks consensus estimate. SanDisk witnessed major gains in the OEM business and higher product revenue, and has provided a decent guidance for the second quarter. The company witnessed stronger pricing and good OEM sales, which in turn have improved gross margin substantially in the first quarter. SanDisk is cash rich and is aggressively reducing capital expenditure outlay. In order to reduce inventory levels, the company is slowing down its in-house NAND supply. We are optimistic about the long-term growth story of SanDisk and upgrade the stock to Outperform. Zacks Investment Research