Melius Research raised its Sandisk (NASDAQ: SNDK) price target from $1,500 to Street-high $2,350 on May 19 while maintaining a ‘Buy’ rating.
Analyst Ben Reitzes cited growing confidence in memory and artificial intelligence (AI) semiconductor companies, adding that new long-term agreements make the company ‘more predictable’ than people assume.
Speaking on Squawk Box, Reitzes also emphasized memory as a key AI bottleneck, which has a lot of potential to drive not only Sandisk but also its peers as demand grows stronger.
“Micron or Sandisk… I think their multiples are going to expand a little closer to the HDD guys because memory is such a critical bottleneck,” the analyst said.
The upgraded outlook also applies to Micron (NASDAQ: MU) and Intel (NASDAQ: INTC), which Reitzes singled out as the stocks he would buy the most.
Citi raises Sandisk price target
Citi also raised its price target on Sandisk on the same day, pushing it up from $1,300 to $2,025 while reiterating a ‘Buy’ rating and arguing the stock should be valued as a supplier with ‘contractualized NAND supply rights’ rather than as a traditional cyclical memory trade.
The thesis was driven by recent Kioxia results, which reinforced the view that NAND pricing strength remains intact. Likewise, the firm pointed to strong sequential revenue growth and operating margins approaching 70%.
Further, Citi argued that Sandisk’s long-term agreements go beyond simple volume commitments. In addition, they also include price floors, variable pricing mechanisms, and financial guarantees.
Overall, the bank believes such structures could reduce earnings volatility during downturns, supporting an expansion in the company’s valuation multiple to roughly 9–10 times projected 2027 earnings, up from the prior 7–8 times range.
Sandisk stock price target
The two price targets discussed above have pushed the average SNDK share price target for the next twelve months to $1,515.88, which finally implies some upside potential for the company over the next year – 13.79%, according to TipRanks.
With 13 ‘Buy’ and only three ‘Hold’ ratings over the past 90 days, Wall Street generally agrees with Ben Reitzes, collectively dubbing Sandisk a ‘Strong Boy.’
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