Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - Benchmark raised its price target on SanDisk (NASDAQ:SNDK) to $85.00 from $70.00 on Monday, while maintaining a Buy rating on the memory chip manufacturer. The stock, currently trading at $68.88, has surged over 90% year-to-date, with InvestingPro data showing analyst targets ranging from $39 to $80.
The price target increase follows SanDisk’s announcement that it would raise prices by more than 10% across all products for channel and consumer customers, applying to new quotes and orders but not existing commitments. The company maintains a strong financial position with a healthy current ratio of 3.56 and an overall GOOD financial health score according to InvestingPro’s comprehensive analysis.
Benchmark expects fab utilization and start-up costs, which totaled $93.5 million last quarter, to dissipate by mid-fiscal year 2026, potentially improving margins by 300 basis points.
The research firm increased its FY26 estimates for SanDisk, now projecting non-GAAP earnings of $6.76 per diluted share on sales of $9.13 billion, up from previous estimates of $6.02 per diluted share on sales of $9.03 billion.
Benchmark also initiated a FY27 forecast for SanDisk, projecting non-GAAP earnings of $9.85 per diluted share on sales of $10.1 billion, with the new $85 price target implying a FY27 P/E of 8.6x, representing a one-turn discount to Micron’s corresponding multiple.
In other recent news, SanDisk Corporation reported strong financial results for the fourth quarter of fiscal year 2025. The company achieved revenue of $1,901 million, marking a 12% increase from the previous quarter and an 8% rise year-over-year. SanDisk’s non-GAAP earnings per share (EPS) were $0.29, exceeding expectations. Despite these positive earnings, the company provided lower EPS guidance for the upcoming September quarter, partly due to a 14-week quarter that adds extra expenses. Analysts at Cantor Fitzgerald maintained their Overweight rating and $50.00 price target on SanDisk, noting the solid earnings beat but highlighting concerns over the guidance. Goldman Sachs also reiterated a Buy rating with a $55.00 price target, acknowledging strong revenue performance and guidance but expressing caution over lower margin guidance for the third quarter. Overall, analysts remain optimistic about SanDisk’s future, with Cantor Fitzgerald emphasizing a modest increase in market expectations for exabytes growth by 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.