SanDisk stock price target raised to $230 from $96 at Morgan Stanley

Investing.com - Morgan Stanley has raised the price target on SanDisk (NASDAQ:SNDK) to $230.00 from $96.00 while maintaining an Overweight rating on the stock. SanDisk shares currently trade at $199.33, having skyrocketed 453.69% year-to-date and approaching the 52-week high of $209.77. According to InvestingPro data, the stock appears overvalued relative to its Fair Value assessment, despite strong price momentum.

The firm removed its Top Pick designation on SanDisk, noting that the short-term risk/reward is now more balanced following the stock’s recent gains. Morgan Stanley remains fundamentally bullish on the company and expects multiple quarters of upward revisions with industry-wide pricing projected to increase 10-15% or more in both Q4 and Q1.

The launch of new enterprise SSD products built on the BiCS8 process is expected to serve as a key catalyst for SanDisk’s share gains in the enterprise SSD market, though the firm notes that visibility remains limited despite strong specifications on paper. With SanDisk’s next earnings report scheduled for December 19, investors using InvestingPro can access comprehensive financial health metrics and expert insights to better evaluate these growth prospects. InvestingPro’s detailed Research Reports cover what really matters for 1,400+ top stocks, including SanDisk.

Morgan Stanley points out that with SanDisk trading at 21 times consensus CY26 EPS, changing investor perception on through-cycle earnings and cycle longevity will be crucial for achieving a higher multiple, a process that will unfold over multiple quarters. Current analyst consensus shows a recommendation of 1.83 (between Buy and Strong Buy), with price targets ranging widely from $39 to $240.

The firm also highlighted that organic supply growth will be easier to bring on in NAND versus DRAM, and NAND staying tight depends on continued steady demand in PC and mobile markets, areas where Morgan Stanley has lower conviction than in datacenter.

In other recent news, SanDisk has seen a series of price target upgrades from various analyst firms, reflecting positive developments in the NAND market. Jefferies significantly increased its price target for SanDisk to $180 from $60, citing an improved pricing outlook and hard disk drive shortages. Benchmark also raised its target to $125 from $85, noting the impact of Samsung’s planned NAND price increases, which align with similar moves by SanDisk. Mizuho adjusted its price target to $112 from $57, highlighting improvements in the NAND and enterprise SSD markets. Morgan Stanley set a new target of $96, driven by strong AI demand and large orders from hyperscalers for NAND enterprise solid-state drives. Additionally, Benchmark raised its target to $85 from $70, after SanDisk announced a price increase of more than 10% across all products for new quotes and orders. These developments indicate a robust outlook for SanDisk in the memory chip sector.

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