Evercore ISI has jumped on the SanDisk bandwagon, starting coverage on the stock with an outperform rating and a $1,200 price target. This represents a 26% increase from Monday’s closing price. However, on a bullish note, the stock price soared 173% to $2,600. The flash memory storage company has been on a tear this year, and is already up more than 290% as the artificial intelligence boom soars demand for its chips. “We believe SNDK is being leveraged in data storage, one of the most attractive areas of the AI infrastructure stack, with demand accelerating and supply remaining constrained at least for 2028 and beyond,” analyst Amit Daryanani said in a note Monday. SNDK YTD Mountain SanDisk year-to-date “Despite strong stock price performance, further upside is expected due to earnings revisions, a mix shift to enterprise SSDs (solid state drives), and multiple reratings,” he added. Daryanani sees scope for sustained growth with average selling price tailwinds as the industry focuses on optimizing supply, demand and profits rather than pure bit growth. Increased exposure to enterprise and cloud should also facilitate a stronger growth trajectory and diversification for the company, he said. Additionally, there is scope for sustainable margins and free cash flow growth, he noted. Finally, Daryanani expects the company to begin returning capital to shareholders in the form of share buybacks.
