SanDisk Corp: Promising Growth Prospects and Strategic Developments Drive Buy Rating
Mark Miller has given SanDisk Corp a Buy rating due to promising growth prospects driven by an anticipated undersupply in the NAND market through 2026, which is expected to boost demand and pricing. The data center market is projected to see double-digit growth by 2025. SanDisk plans price increases and expects a mid-teens CAGR in NAND demand, along with margin improvements and a long-term gross margin target of 35%. Citi also maintains a Buy rating with an $80 target price.
Mark Miller’s rating is based on several promising developments for SanDisk Corp. The company presented at a recent investor conference, highlighting an anticipated undersupply in the NAND market through 2026, which is expected to drive demand and pricing. Additionally, the data center market is projected to experience double-digit exabyte growth by 2025, with further increases in 2026, supporting SanDisk’s growth prospects.
Furthermore, SanDisk plans to implement price increases across various segments and anticipates mid-teens compound annual growth rate in NAND demand. The company also expects margin improvements in the coming quarters, with a long-term gross margin target of 35%. The introduction of High Bandwidth Flash technology and the successful qualification of Enterprise SSD products further bolster SanDisk’s outlook. These factors, combined with positive net cash flow expectations, underpin Mark Miller’s Buy rating and the $85 target price.
In another report released on September 8, Citi also maintained a Buy rating on the stock with a $80.00 price target.
