Sandisk shares have experienced a remarkable increase of 4,063% over the past year, driven by a surge in memory demand. Barclays analyst Tom O'Malley noted that the bank has upgraded Sandisk from equal weight to overweight and raised the price target from $1,200 to $2,300, suggesting a 45% upside from the stock's recent closing price.
O'Malley highlighted that the memory and storage sector is currently the most attractive, with a persistent supply-demand imbalance expected to last through 2027. Sandisk's new business model, which includes clear performance obligations and financial guarantees with prepayments, is designed to enhance revenue security and customer supply visibility.
This strategic shift is anticipated to fundamentally change how memory companies operate, providing them with a more secure market position. The upgrade aligns with broader analyst sentiment, as 18 out of 22 analysts covering Sandisk recommend a buy or strong buy. Following the upgrade, Sandisk shares rose nearly 6% in premarket trading