U.S. stocks edge higher; solid earnings season continues
Investing.com - Jefferies has initiated coverage on SanDisk (NASDAQ:SNDK) with a Buy rating and a $60.00 price target, representing potential upside based on the firm’s outlook for the memory chip maker. Currently trading at $46.41, the stock is considered slightly undervalued according to InvestingPro analysis, with analyst targets ranging from $37 to $70.
The price target is based on 8 times the company’s calendar 2027 earnings per share estimate of $7.18, according to Jefferies’ research note released Monday.
Jefferies believes SanDisk’s spin-off from Western Digital (WDC) has the potential to unlock shareholder value as the company’s updated technology roadmap should help facilitate enterprise solid-state drive (eSSD) market share gains.
The research firm notes that if content and unit trends sustain despite tariff pressures, there could be upside to current estimates, with pricing data supporting high single-digit percentage ASP (average selling price) increases in the second half of 2025.
These price improvements could yield low-to-mid-teens growth for SanDisk, according to Jefferies’ analysis of the memory market conditions.
In other recent news, SanDisk Corporation has increased its secondary public offering to over 18 million shares from the initially proposed 17 million. These shares, priced at $38.50 each, are held by Western Digital Corporation (NASDAQ:WDC) and will be part of a debt-for-equity exchange involving affiliates of J.P. Morgan Securities LLC and BofA Securities. The offering includes a greenshoe option for underwriters to purchase an additional 2.78 million shares. Meanwhile, Benchmark has raised its price target for SanDisk to $62, maintaining a Buy rating, citing a cyclical upturn in the NAND flash memory business driven by artificial intelligence and data center spending growth. Citi has initiated coverage on SanDisk with a Buy rating and a price target of $57, highlighting the company’s competitive edge in the NAND market through its Bics8 technology. BofA Securities also initiated coverage with a Buy rating and a price target of $61, pointing to favorable supply-demand dynamics in the memory market. These developments indicate a positive outlook for SanDisk in the evolving memory chip industry.
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