- JPMorgan initiated coverage of SanDisk with an ‘Overweight’ rating and a $2,250 price target.
- JPMorgan stated SanDisk is “uniquely positioned” to benefit from rising NAND demand tied to AI inference.
- Morgan Stanley was more cautious on whether the improvement is structural but noted near-term conditions are strengthening.
SanDisk (SNDK) shares were on track for a five-day winning streak in pre-market trade on Friday after the company announced new financial targets for the next three years. In a note to investors, JPMorgan said SanDisk’s plan has “structurally reset” its margin profile, while Morgan Stanley called its capital-allocation strategy a “substantial positive.” SNDK stock rose more than 6% in pre-market trading and had jumped over 23% so far this week.
JPMorgan analyst Harlan Sur initiated coverage with an ‘Overweight’ rating and a $2,250 price target, stating SanDisk is “uniquely positioned” to benefit from a “structural inflection” in NAND demand. This growth, Sur noted, is driven in part by the “rapid growth” of AI inference. The price target implies a potential upside of over 47% for shares from Thursday’s closing price.
Conversely, Morgan Stanley pointed to the company’s investor day presentation but was more cautious on the improvement. The firm said it isn’t “completely in agreement with management’s view that improvements are more structural than cyclical.” Morgan Stanley maintains an ‘Overweight’ rating with a $1,750 price target, implying a 15% upside from Thursday’s close.
At its 2026 Investor Day, SanDisk expects revenue to grow in the mid-to-high teens over the next three years, supported by rising demand for AI and data center memory. Long-term agreements with eight customers now cover about half of the company’s expected memory sales next year. CFO Luis Visoso stated the company plans to return 100% of excess cash to shareholders after investing in the business.
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