SanDisk (SNDK) PT Raised to $1,550 at BofA Securities

BofA Securities analyst Wamsi Mohan raised the price target on SanDisk (NASDAQ: SNDK) to $1,550.00 (from $1,080.00) while maintaining a Buy rating.

The analyst comments: "SNDK reported a strong beat to F3Q rev/EPS and guided F4Q massively above Street expectations. Bit shipments were down q/q but datacenter bits increased double digits while consumer and client declined. Pricing was robust across the board (+137% q/q) resulting in DC rev +233% q/q. During F3Q, Sandisk signed three multi-year deals (new business models or NBMs) and two additional so far in F4Q with active talks with “several other customers.” The three deals that were signed in the qtr will provide at least $42bn in contractual revs (recorded qtrly) and Sandisk is guaranteed payments of $11bn in case of termination of contracts. This dynamic offers some protection to SNDK in case of a downcycle where customers could choose to back out of capacity commitments. Reiterate Buy on valuation, undervalued JV assets, eSSD share gains in C26, & long-term potential for industry consolidation."

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