Analyst cites 645% revenue growth and 78% gross margins as key drivers for the revised price target.
Citi analyst Asiya Merchant raised SanDisk’s price target to $2,500 from $2,025, citing a 645% surge in datacenter revenue and 78% gross margins. The company also secured five multi-year customer contracts and generated $2.99 billion in free cash flow last quarter.
The new target exceeds the Street’s consensus of $1,912.04, which implies limited upside. SanDisk’s zero long-term debt and a newly authorized buyback further bolster the bullish outlook, though valuation risks remain with a trailing P/E near 71.
Merchant’s call follows Micron’s strong quarter, reinforcing expectations of a structural shift in the NAND cycle. However, skepticism persists over whether the growth is sustainable or another cyclical peak.