Goldman Sachs has begun coverage on SanDisk (SNDK, Financial) with a Buy rating and set a price target of $55. The firm's assessment of the U.S. semiconductor capital equipment sector, which includes storage and foundry components, indicates a balanced outlook. According to the analyst, the semiconductor capital equipment industry is currently in a mid-cycle phase, experiencing both positive and negative forces that contribute to stable revenue dynamics across the entire sector.
While recognizing more potential risks than opportunities, Goldman Sachs anticipates stable revenue through 2026 as the most plausible scenario. The firm views China as more of an opportunity rather than a threat for companies within this space. Additionally, it highlights potential growth in the hard-disk-drive market, with an anticipated recovery in NAND expected by 2026. This projected rebound in NAND is seen as a key driver for future growth.
