Key Takeaways:
- Citi raised its price target on SanDisk (SNDK) to $2,025 from $1,300.
- The new target represents a 56% increase, signaling strong confidence.
- The upgrade comes amid a memory shortage and SanDisk's 251% revenue growth.
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Citi Lifts SanDisk Price Target by 56% to $2,025
Citigroup boosted its price target for memory-chip maker SanDisk by 56% to $2,025, citing sustained demand for memory products and the company’s powerful earnings growth.
While Citi did not disclose a change to its formal rating, the significant price target revision reflects a deeply bullish outlook from the bank.
The bank lifted its target for SanDisk to $2,025 from a previous $1,300. The move follows a period of massive growth for SanDisk, which saw its revenue soar 251% year-over-year to nearly $6 billion in its last quarter, with an operating margin of 69%, according to company filings.
The upgrade comes as the memory chip sector faces both tailwinds from a prolonged supply shortage and headwinds from events like a recent Samsung union strike that has rattled chip stocks, including SanDisk, Micron (MU), and Western Digital (WDC).
SanDisk's stock has been one of the market's top performers, gaining over 3,000% in the past year and pushing its market capitalization to around $190 billion. The company, which spun out of Western Digital, is benefiting from a memory shortage that some analysts project could last beyond 2028.
The new $2,025 target suggests Citi sees significant further upside, even with the stock trading at 24 times forward earnings estimates. Investors will now watch to see if other analysts follow Citi’s lead, with SanDisk's next earnings report expected in late July as the next major catalyst.
This article is for informational purposes only and does not constitute investment advice.
