Sandisk (SNDK) shares have already rallied greater than 100% this month, however a Cantor Fitzgerald analyst believes they might push a lot greater from right here via the rest of 2026.
Christopher Muse’s bullish be aware on SNDK arrives on the heels of its blockbuster Q2 financials that got here in miles above Avenue estimates on Jan. 29.
Traders cheered the flash reminiscence storage firm this morning because it guided for $13 a share of earnings for its present quarter, properly over double the $5.11 that Wall Avenue had forecast.
Following the post-earnings rally, Sandisk inventory is buying and selling at practically 20x its value in April of 2025.
In keeping with Christopher Muse, NAND flash costs may climb one other 50% in Sandisk’s fiscal Q3, sustaining its pricing energy at a degree that may solely be described as “uncommon” for the reminiscence sector.
This structural tailwind may increase SNDK’s gross margin to a formidable 67% this yr in comparison with beneath 35% just a few months in the past, he instructed shoppers in a analysis be aware at the moment.
The Cantor Fitzgerald analyst dubbed the agency’s enterprise SSDs crucial enablers for hyperscale synthetic intelligence infrastructure, including its inventory may stretch additional to $800 by the top of 2026.
Muse’s revised value goal on SNDK inventory indicators potential upside of one other 35% from right here.
In his report, Muse additionally mentioned clients at the moment are choosing multi-year agreements with Sandisk, as an alternative of quarterly value negotiations, which may assist cut back the cyclicality of its inventory.
Moreover, the corporate’s shares are comparatively cheap to personal at a ahead price-to-earnings (P/E) a number of of about 34x, given Nvidia (NVDA) is buying and selling at 43x at writing.
The Cantor Fitzgerald analyst sees SNDK incomes $77 on a per-share foundation this yr, and increase it additional to $91 in 2027.
Notice that Sandisk shares are at present buying and selling sharply above its main transferring averages (MAs), reinforcing that bulls stay firmly in management throughout a number of timeframes.
What’s additionally price mentioning is that Wall Avenue maintains a consensus “Average Purchase” score on SNDK shares.
