Citi raised its price target on Sandisk (NASDAQ: SNDK) from $2,025 to $2,500, with a reiterated ‘Buy’ rating on Thursday, June 25.
The bank is bullish following Micron’s (NASDAQ: MU) record-breaking earnings report, which shows the NAND market will remain tight through 2027, benefiting Sandisk.
“We remain constructive on favorable NAND supply/demand fundamentals on durable AI-led datacenter demand (KV cache offloading to more cost-effective SSDs),” the firm wrote.
Moreover, Citi also argued for a shorter-term, 90-day upside view on Sandisk shares, highlighting several near-term catalysts, including upcoming industry earnings reports, the Flash Memory Summit in August, and Sandisk’s investor day later that month.
These developments, the bank states, can provide the market with fresh insights into demand trends, product roadmaps, and capital return plans, potentially driving Sandisk further up.
Morgan Stanley reiterates its Sandisk price target
On June 22, Morgan Stanley maintained a ‘Buy’ rating on the firm, with a Sandisk share price target of $1,750 following a discussion with the management, which reinforced the view that the NAND memory market is undergoing a ‘fundamental repricing.’
While the target still remains below the stock’s trading price of $2,138 at press time, it is nonetheless distinctly bullish in tone, given the analysts’ argument that demand is reshaping the industry’s long-term outlook.
In addition, Morgan Stanley focused on artificial intelligence (AI), arguing, like Citi, that large language models have become a new source of demand for high-performance NAND flash memory.
Sandisk’s financial performance has already begun reflecting the shift. Namely, the company reported fiscal third-quarter revenue of $5.95 billion, up 97% sequentially and ahead of guidance.
Wall Street Sandisk stock consensus
The current Wall Street consensus on Sandisk shares is ‘Strong Buy,’ with 14 ‘Buy’ and just two ‘Hold’ recommendations recorded over the past 90 days on TipRanks.
As for the price, the average SNDK stock price forecast for the next 12 months sits at $1,873, which implies a 13.41% downside.
Featured image via Shutterstock
