Analyst Mark Newman raises SanDisk’s price target by 76% citing long-term customer agreements reducing reliance on volatile NAND prices.
Bernstein analyst Mark Newman increased SanDisk’s (SNDK) price target to $3,000 from $1,700, maintaining an Outperform rating. The upgrade reflects a shift in SanDisk’s business model toward multi-year customer contracts with firm financial commitments, reducing exposure to NAND price volatility.
Historically, NAND flash memory prices fluctuated like commodities, making memory stocks unpredictable. SanDisk’s new agreements aim to stabilize revenue by locking in long-term deals, a change highlighted in its fiscal third-quarter results by CEO David Goeckeler. The company has already signed five such contracts.
Newman, a top-ranked analyst with an 80% success rate, bases his call on this structural shift rather than a rebound in NAND prices. The move signals confidence in SanDisk’s ability to mitigate cyclical risks that have plagued the memory sector for decades.