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Home / Markets / Industries / Technology

Wednesday, October 28, 2009

SanDisk Dives, TI Rallies on Goldman Outlooks

By Matt Egan

FOXBusiness

Two key tech stocks were moving in opposite directions Wednesday as Goldman Sachs downgraded flash memory maker SanDisk (SNDK) but upped its rating on chip maker Texas Instruments (TXN).

With SanDisk’s stock near Goldman’s price target of $24, the firm downgraded it from “buy” to “neutral." While shareholders “should feel comfortable” holding the stock, Goldman said it’s long argued “that the value of SanDisk’s business is in the royalty stream, as the product business does not generate positive earnings over the course of a cycle.”

Goldman maintained its $24 price target on SanDisk. Shares of SanDisk, which have more than quadrupled since plunging to $5.07 last November, fell 3.1% to $21.98 in recent trading. The stock remains up 4.3% over the past four weeks.

On the other hand, Texas Instruments saw its stock climb almost 1% despite steep losses on the Nasdaq Composite index, as Goldman upped the company to “buy” from “neutral.” The firm pointed to top-line growth on strong distributor re-sales, lean inventories and expectations of a bigger analog market share.

Goldman also raised its price target from $27 to $29, reflecting an additional 22% in potential upside.

TI’s stock is now up 53% this year and has nearly doubled from its 52-week low.

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