Evercore ISI has increased its price target for SanDisk (NASDAQ: SNDK) to $3,100 while maintaining an ‘Outperform’ rating. This adjustment suggests an upside potential of approximately 61% from the stock’s current price of $1,915.
The analyst Amit Daryanani believes that recent long-term agreements under SanDisk's new business model will enhance earnings visibility. These agreements are seen as a structural change for the company, potentially alleviating uncertainties regarding future revenue streams.
Evercore estimates that new contracts will generate over $62 billion in minimum committed revenue in the coming years and will provide financial guarantees exceeding $11 billion. With this support, Daryanani anticipates that SanDisk could realize around $212.78 in earnings per share (EPS) for fiscal 2027, surpassing the Wall Street consensus estimate of $203.33.
Moreover, the firm posits that advancements in artificial intelligence will drive a growing share of earnings, moving away from traditional memory cycles. In an optimistic scenario, SanDisk's EPS could exceed $300 by fiscal 2027, suggesting a potential stock valuation as high as $4,000.
SanDisk's earnings profile is reportedly becoming less cyclical as a larger proportion of revenue derives from long-term agreements, which could bolster investor confidence and lead to higher valuation multiples. Positive sentiment persists among analysts, with a ‘Strong Buy’ consensus rating and an average 12-month price target of $2,041.88, while the highest target reaches $3,250.
As demand for AI infrastructure continues to grow, SanDisk shares are increasingly attracting attention, aligning with expectations for improved earnings and visibility into revenue growth.
This material is for informational purposes only and should not be considered financial advice.
