Although Sandisk Corp. (NASDAQ: SNDK) stock price has plunged over 30% during the past 30 days, Mark Newman, a Wall Street analyst from Bernstein, has reiterated a bullish outlook over the next 12 months.
Newman reaffirmed a Buy rating for the SNDK stock, according to a note sent to clients on July 21. The analyst further maintained a 12-month price target for SNDK stock at $3,000, thereby projecting a 115.68% upside.
Late last month, Newman raised the firm’s 12-month price target for Sandisk Corp. stock from $1,700 to $3,000. The Outperform rating for Sandisk stock was based on long-term agreements (LTAs), which provide structural pricing protection and reduce the company’s earnings volatility.
Bernstein estimates that the memory maker’s fiscal 2030 earnings per share (EPS) would still reach $214 with 60% of volumes covered by LTAs. As such, the firm increased its base-case estimates to $243 and $272 for fiscal year 2027 and 2028, respectively.
SNDK stock forecast and performance
Following Newman’s affirmed SNDK stock forecast for 12 months, 17 Wall Street analysts surveyed by TipRanks have set an average price target of $2,041.88, suggesting a potential 36.76% upside.
These Wall Street analysts have issued a Strong Buy rating for SanDisk Corp. stock despite rising fears of an AI stock bubble burst, as Finbold pointed out. Earlier this week, Morgan Stanley (NYSE: MS) said the sell-off in U.S. memory stocks has created a compelling entry point.
Furthermore, the bank’s thesis is that the longer-term memory shortage could intensify in 2027 and 2028.
“There isn’t enough memory vs. AI requirements, and we just don’t see that changing,” Morgan Stanley reported.
Over the past 24 hours, Sandisk stock price has surged more than 11%, trading at roughly $1,496.66 at press time.
As a result, if SNDK stock price continues to rally in the coming days, its prior correction may end, with Newman’s 12-month price target likely to be reached.
