SanDisk (SNDK) shares are coming under pressure this morning after Needham analyst Y. Edwin Mok cut his rating on the stock to Under Perform from Hold.

Mok writes in a research note that the downgrade reflects “early signs of weakness in the NAND flash memory sector that we believe will lead to lower prices.” He contends checks find that NAND product inventories have increased substantially, and that demand in both the retail and OEM channel has slowed since May. Heading into the second half, he writes, “we are concerned that production ramps”–Mok expects higher output from both Samsung and Toshiba–“will swing the NAND sector into oversupply.”

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Now that we’re experiencing Q4 earnings reports in all their glory, the time has come to shift focus to Q1. That’s what Needham chip analyst N. Quinn Bolton did this morning. And the picture is not pretty.

Bolton says he now expects Q1 revenues for most of the companies he covers to be down 15-20 percent sequentially, with Q2 sequentially flat. (His previous theory was that Q1 would be down about 10 percent.) He says that currently depressed orders have been depressed by supply chain-wide inventory reductions, but that “visibility into a snapback in orders remains uncertain.” His current theory: Slash estimates to the bone, and hope the companies can start to beat them in the second half.

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Stamps.com (STMP) shares dropped sharply today after Needham’s Mark May cut his rating on the stock Under Perform from Hold.

May notes that the company has a large cash position–about $4.64 a share–which generates about 50 percent of its pre-tax income. A recent drop in bond yields, he cautions, will result in a hit to the company’s earnings. He also expect slower PC Postage subscriber growth given the weakening macro environment.

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Needham’s Charlie Wolf this morning cut his rating on Research In Motion (RIMM) to Underperform from Hold and cut his estimates on the company to reflect the growing threat from explosive sales of the Apple (AAPL) iPhone 3G.

“Sales of Apple’s iPhone 3G appear poised to blow through everyone’s forecasts,” Wolf wrote in a research note this morning. “While RIM’s dominance of the enterprise market appears secure, at least for now, the company’s great growth driver–the consumer market–is bound to come under siege because of the iPhone.”

Wolf notes that the BlackBerry Pearl has allowed the company to “dramatically” increase its consumer sales, but he asserts that the company’s success has stemmed from a lack of competitive offerings.

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Needham’s Charlie Wolf this morning raised his rating on Netflix (NFLX) to Hold from Under Perform, and lifted his price target on the Web-based video rental company to $25 from $22. Wolf said he has revised his model of the company’s business, and that his previous model “materially under-estimated the value of the company.” His previous model assumed the profitability of a subscriber was independent of how long someone has been a customer; but now he says that “the profitability of a subscriber increases with the length of time he maintains his subscription.”

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