Analyst Asiya Merchant from Citi maintained a Buy rating on SanDisk Corp and increased the price target to $125.00 from $80.00.
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Asiya Merchant has given his Buy rating due to a combination of factors influencing SanDisk Corp’s market position and future growth prospects. The analyst has noted an increase in the company’s earnings per share estimates for the upcoming fiscal years, reflecting improved gross margins driven by heightened demand for hyperscale enterprise SSDs. This demand is supported by a favorable supply and demand environment, further bolstered by a projected increase in NAND bit demand growth due to robust data center requirements.
Additionally, the analyst highlights the company’s strategic advancements in the enterprise SSD market, with a notable increase in its share of bit shipments to data centers. This growth is expected to continue as SanDisk qualifies its latest products with cloud customers, potentially shifting its product mix towards higher-margin offerings. The target price for SanDisk’s stock has been raised, reflecting the momentum in hyperscale SSD demand, improved pricing, and margin opportunities, alongside a generally positive industry outlook.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $125.00 price target.