SanDisk Stock Gains Huge Price Target Hike, Margin for Error Narrowing

SanDisk Corporation (NASDAQ: SNDK) has garnered significant attention from analysts, with a flurry of price target increases reflecting confidence in the company's performance and market outlook. However, one analyst is urging caution after the recent exuberance.

SanDisk stock is currently changing hands at $211.20, reflecting a 5.95% increase, and on a remarkable upward trajectory, fueled by surging demand for NAND products and strategic pricing adjustments by the company and its competitors.

Morgan Stanley, while maintaining an Overweight rating, significantly raised its price target on SanDisk to $230 from a previous $96. However, the firm removed the stock from its “Top Pick” list, suggesting that the substantial recent price appreciation leaves little margin for error in the coming quarter.

The analyst believes it will take time for earnings to justify the current stock price, but remains bullish on the company's long-term prospects.

This cautious note follows a series of overwhelmingly positive analyst actions. Just weeks ago, Jefferies increased its price target to $180 from $60, citing an improved pricing outlook, hard disk drive shortages, and the rapid growth of multimodal large language models. Mizuho also set a $180 target, citing improvements in NAND pricing and the company’s strategic direction. Benchmark, on September 24, raised its target to $125, anticipating higher NAND prices and revising its fiscal year 2026 non-GAAP earnings forecast to $6.91 per diluted share on sales of $9.25 billion. Citigroup also joined the chorus, increasing its price target to $125.

The initial catalyst for this optimism appeared in early September, when Morgan Stanley first raised its SanDisk price target to $96, driven by substantial orders from hyperscalers for NAND enterprise solid-state drives (eSSDs). These orders, totaling tens of exabytes, were expected to push NAND pricing higher than previously anticipated, benefiting SanDisk's revenue.

Price Targets

The markets will be closely watching SanDisk's upcoming earnings reports to assess whether the company can deliver on the heightened expectations embedded in its current valuation. While the long-term outlook remains positive, the near-term presents a more nuanced picture, demanding careful consideration from investors.