Trump says Iran war "close to over" amid hopes for more negotiations
Investing.com - Evercore ISI initiated coverage on SanDisk (NASDAQ:SNDK) with an Outperform rating and a price target of $1,200. The stock currently trades at $952.50, having delivered a remarkable 2,565% return over the past year.
The firm views SanDisk as positioned to benefit from data storage demand driven by AI infrastructure, where supply remains constrained through at least 2028. Evercore ISI expects the current NAND cycle to prove more durable than past cycles due to AI-driven demand and sustained supply discipline.
The firm cited strategic contractual agreements between cloud companies and NAND providers that establish pricing floors and provide upfront cash payments. Data center customers currently account for less than 15% of total sales, though Evercore ISI expects growth in this segment to accelerate.
Evercore ISI anticipates margin and free cash flow expansion supported by shifts in NAND supply-demand balance and strategic contracts. The firm also expects SanDisk to begin returning capital to shareholders through buybacks following recent balance sheet deleveraging that created a net cash position.
The $1,200 price target reflects 12 times the firm’s fiscal 2027 earnings estimate. Evercore ISI set a bull case price target of $2,600. According to InvestingPro analysis, the stock appears overvalued at current levels relative to its Fair Value. InvestingPro Tips highlight that analysts predict the company will be profitable this year, with net income expected to grow—two of 20 exclusive tips available to subscribers.
In other recent news, SanDisk Corporation will join the Nasdaq-100 Index, replacing Atlassian Corporation. This change is set to take place before the market opens on April 20, 2026. On the financial front, Jefferies has increased its price target for SanDisk stock to $1,000, maintaining a Buy rating. The firm attributes this adjustment to ongoing long-term agreement negotiations and rising AI demand, which are expected to boost NAND prices. Similarly, Bernstein has raised its price target for SanDisk to $1,250, citing stronger-than-expected NAND price increases. Memory prices, particularly NAND, have shown significant upward momentum, according to Bernstein’s recent analysis. Additionally, Morgan Stanley has reiterated its overweight rating on SanDisk, suggesting that recent market selloffs are a healthy correction rather than a fundamental market shift. The investment bank believes supply constraints will continue to support memory stocks despite concerns about capital expenditure and demand sustainability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.