SanDisk Stock Keeps Sinking, So Why is Wall Street More Bullish?
SanDisk (SNDK) inventory fell 12.63% Monday, July 13, and slid additional after hours, as a broad selloff hit reminiscence and chip shares. Several Wall Street analysts nonetheless raised or reaffirmed their worth targets on the corporate regardless of the drop.
The strikes present analysts belief SanDisk’s earnings outlook, at the same time as reminiscence sector volatility has rattled the broader group in current weeks.
Analysts Defend Bullish Case Despite the Slide
Citigroup reiterated its $2,500 price target on SanDisk with senior analyst, Asiya Merchant, issuing a bullish observe and maintaining a purchase score on SNDK. The worth goal implies roughly 30% upside from the newest shut.
Evercore ISI analyst Amit Daryanani went further, he raised his goal to $3,100 from $1,400 and stored an “Outperform” score. The new goal implies practically 62% upside from the final shut. Daryanani argues traders underestimate the sturdiness of SanDisk’s earnings and pricing energy via 2027.
Bernstein analyst Mark Newman lifted his goal to $3,000 from $1,700. He factors to structural adjustments in how reminiscence suppliers now write long-term provide agreements.
Wedbush analyst Matthew Bryson advised MarketWatch the reminiscence market stays “in an excellent place.” He mentioned Micron (MU) and SanDisk each profit from AI-driven demand that chipmakers can not rapidly match, since new fabs take years to construct.
Retail Sentiment Stays Extremely Bullish
Stocktwits knowledge showed “extraordinarily bullish” retail sentiment on SNDK, with high message quantity. A associated ballot of practically 1,800 respondents put Micron forward for greatest returns, at 57%. SanDisk drew 19%, nonetheless reflecting continued capital flowing into reminiscence shares regardless of the pullback.
Data places 18 of twenty-two analysts overlaying SanDisk at “Buy” or “Strong Buy,” with a mean goal of $2,112.32. Shares stay up practically 600% yr up to now, a run that has additionally stirred renewed AI bubble concerns throughout the sector.
The subsequent earnings cycle will present whether or not SanDisk can develop into targets north of $3,000.
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