Mizuho raises SanDisk stock price target to $57 on NAND pricing improvement

Investing.com - Mizuho (NYSE:MFG) has raised its price target on SanDisk (NASDAQ:SNDK) to $57.00 from $50.00 while maintaining an Outperform rating on the stock. Currently trading at $46.20, SanDisk has shown strong momentum with a 28% gain over the past six months. According to InvestingPro data, analysts’ targets range from $37 to $70, with the stock currently appearing fairly valued based on InvestingPro’s Fair Value model.

The price target increase represents a higher valuation multiple of 11.0x Mizuho’s fiscal 2026 earnings estimate, up from the previous 9.1x multiple, according to the research note released Thursday.

Mizuho cited improving NAND pricing as a key factor driving better gross margins for SanDisk, while noting that demand is trending positively as the PC refresh cycle remains in early stages.

The firm also pointed to AI on-device applications providing early tailwinds for handset demand, with High-Bandwidth Flash (HBF) and 3D Matrix memory remaining long-term growth drivers for the company.

Mizuho maintained its June quarter revenue and earnings per share estimates at $1.80 billion and $0.02, respectively, while adjusting its fiscal 2026 EPS forecast to $5.19 from $5.52 and raising its fiscal 2027 estimates to $9.15 billion in revenue and $8.39 in EPS.

In other recent news, SanDisk has been the focus of several major investment firms, all initiating coverage with a Buy rating. Goldman Sachs highlighted the improving fundamentals in the NAND memory industry, expecting SanDisk’s gross margins to improve due to better supply-side decisions. Jefferies also initiated coverage with a Buy rating, citing SanDisk’s potential market share gains following its spin-off from Western Digital (NASDAQ:WDC). The firm projects price improvements could lead to significant growth for SanDisk. Benchmark raised its price target for SanDisk to $62.00, driven by increased demand from artificial intelligence and data center spending, adding the company to its "Best Ideas List."

Citi also initiated a Buy rating with a price target of $57.00, noting favorable pricing trends in the NAND market that could allow SanDisk to gain market share. The firm acknowledged potential challenges but sees upside due to the company’s valuation and joint venture assets. BofA Securities offered a Buy rating with a $61.00 price target, emphasizing SanDisk’s position to benefit from favorable supply-demand dynamics in the memory market. BofA pointed to potential margin expansion and a unique joint venture structure as competitive advantages for SanDisk. These developments suggest a broadly positive outlook from analysts on SanDisk’s future performance.

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