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Sandisk (SNDK) Says Toshiba Risk Mitigated by Accounting Structure; Cowen Affirms at 'Market Perform'

May 22, 2015 6:12 AM EDT
Get Alerts SNDK Hot Sheet
Price: $76.18 --0%

Rating Summary:
    9 Buy, 27 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 10 | New: 10
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Cowen and Company affirms Sandisk (Nasdaq: SNDK) at Market Perform with a price target of $70 following reports from Japan that Toshiba's internal accounting investigation is expanding into semiconductors.

Analyst Tim Arcuri noted that, after speaking with Sandisk, the company's risk is mitigated by its accounting structure. The analyst elaborated, Per the company, the accounting for the JV is done primarily by Toshiba on Toshiba systems; however, SNDK has its own accountants in Yokkaichi who are involved in reviewing the financial results for the JVs. Additionally, SNDK accountants also review, and conform where appropriate, to ensure the JV results on SNDK books comply with US GAAP ... Thus, we cannot say there is zero exposure, but this added layer of accounting review would seem to mitigate SNDK's risk regarding this new development.

For an analyst ratings summary and ratings history on SanDisk click here. For more ratings news on SanDisk click here.



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