Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
Investing.com - SanDisk (NASDAQ:SNDK), currently trading at $45.38 with a market capitalization of $6.8 billion, maintained its Overweight rating and $50.00 price target at Cantor Fitzgerald following the company’s recent earnings report. According to InvestingPro, the stock trades between its 52-week range of $27.89 to $58.36, with average daily volume of 2.65 million shares.
The company delivered a solid earnings beat for the June quarter, though lower EPS guidance for the September quarter overshadowed the positive results. Cantor Fitzgerald noted that a significant portion of the guidance miss was attributed to a 14-week quarter in September, which added an extra week of expenses. InvestingPro data shows the company maintains a "GOOD" overall financial health score, with particularly strong price momentum metrics, suggesting resilience despite near-term challenges.
SanDisk remains optimistic about the overall supply/demand environment, expecting undersupplied conditions to persist through the end of 2026. The company reported that channel inventories have normalized, with SanDisk’s own days of inventory falling to 135 days from 150 days in the previous quarter.
Despite concerns about lower gross margin guidance, which Cantor Fitzgerald attributes largely to higher costs in BiCS8 technology, the firm expects margins to normalize over time as cost per bit continues to fall and ASPs rise. The research firm raised its earnings estimates for calendar years 2025 and 2026 to $2.48 and $7.25 respectively, up from previous estimates of $2.30 and $7.00.
Cantor Fitzgerald views SanDisk as undervalued, particularly following the 10%+ drop in after-hours trading, and suggests the $50 price target may be conservative compared to industry peer valuations. This view is supported by key valuation metrics from InvestingPro, including a price-to-book ratio of 0.74 and an EV/EBITDA of 8.34. Analyst targets range from $37 to $70, with the consensus recommendation leaning bullish at 1.82 (where 1 is Strong Buy and 5 is Strong Sell). For deeper insights into SanDisk’s valuation and over 30 additional financial metrics, explore the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, SanDisk Corporation reported a strong financial performance 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 were $0.29, surpassing analysts’ expectations. Despite the positive earnings report, Goldman Sachs maintained its Buy rating on SanDisk with a price target of $55.00. The investment bank acknowledged the company’s robust revenue performance and guidance that exceeded market expectations. However, they also noted concerns regarding SanDisk’s lower margin guidance for the upcoming third quarter. These developments highlight the company’s continued innovation and growth in the market.
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