Citi upped their target price on Sandisk (NASDAQ:SNDK) from $2,025 to $2,500 and gave it a “Buy” rating on Thursday, June 25.
The bank has the power to follow Micron’s (NASDAQ: IN) breaking records income statementwhich shows the NAND market will remain strong until 2027, benefiting Sandisk.
“We remain committed to NAND supply/demand requirements for AI-driven sustainability (offloading KV cache to low-cost SSDs),” the company wrote.
In addition, Citi also issued a short-term, 90-day outlook for Sandisk shares, indicating several upcoming events, including upcoming corporate reports, the Flash Memory Summit in August, and Sandisk’s investor day later that month.
This, the bank says, could provide the market with new insights into operations, sales trends, and investment plans, which could propel Sandisk forward.
Morgan Stanley reiterates its rating on Sandisk
On June 22, Morgan Stanley maintained a ‘Buy’ rating on the company, with Sandisk’s price target of $1,750 following discussions with management, which fueled the view that the NAND memory market is going into a ‘recovery.’
Although the target is still below the trading price of $ 2,138 at the time of printing, it still looks very positive, due to what analysts argue that the demand is reshaping the direction of the industry.
In addition, Morgan Stanley focused on artificial intelligence (AI), argues, like Citi, that large scale models have become a new source of demand for high-performance NAND flash memory.
Sandisk’s financial performance is already beginning to reflect this change. Accordingly, the company reported third-quarter revenue of $5.95 billion, up 97% sequentially and ahead of guidance.
Wall Street Sandisk stock consensus
Wall Street’s current consensus on Sandisk shares is ‘Strong Buy,’ with 14 ‘Buy’ and only two ‘Hold’ recommendations listed on 90 days ago on TipRanks.
Regarding the price, the price of SNDK for the next 12 months is at $1,873, which means that it has decreased by 13.41%.
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