Piper Jaffray’s Jagadish Iyer this morning writes that flash memory drive SanDisk (SNDK) could see a lift from the ongoing disruption of the hard-disk drive industry caused by flooding in Thailand, following Intel’s (INTC) warning yesterday morning that the problem will persist into the new year.
“Consumers may be willing to consider SSD options as a viable alternative particularly in the emerging Ultrabooks product category,” writes Iyer, referring to the sleek, slim, lightweight laptop category being promoted aggressively by Intel.
Iyer has been modeling solid-state drive sales of $430 million for SanDisk in 2012, well up from $170 million in 2011, as the company garners 8% share of the total market category.
Sales of Microsoft’s (MSFT) Windows 8 operating system, later in the year, combined with the Ultrabook laptop/tablet machines touted by Intel should boost flash drive adoption, he notes. And things will be helped by a drop in price of the drives to about $1 per gigabyte.
Iyer has an Overweight rating on shares of SanDisk and a $58 price target.
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