Overview
- Citi Research, which raised its SanDisk price target to $2,025 on Tuesday, projects about 52% upside from a $1,333 close and keeps a Buy rating.
- Kioxia’s latest results showed roughly 85% quarterly revenue growth with guidance for another strong sequential jump, a read-through that supports SanDisk given their shared NAND factories in Yokkaichi and Kitakami.
- The bullish case builds on SanDisk’s blowout Q3 FY26 with $5.95 billion in revenue, 78.4% gross margin, and about $42 billion in multi-year supply deals that include price floors and volume guarantees.
- Citi shifted to a higher earnings multiple framework, arguing those long-term contracts could keep gross margins near or above 80% in softer pricing cycles, which could justify a premium valuation versus memory peers.
- Analyst sentiment remains broadly positive with about 20 of 26 firms at Buy, though some research voices flag stretched valuation after a multi-thousand-percent run and now see only modest near-term upside.