Sandisk SNDK shares climbed 6% in premarket trading Friday after new analyst targets followed the company's investor day, where management outlined an ambitious multiyear growth plan.
JPMorgan started coverage with an Overweight rating and a $2,250 price target. The competing views leave investors weighing Sandisk's AI-related growth opportunity against the possibility of another memory downturn.
Wedbush kept an Outperform rating and a $2,000 target but urged caution over the memory industry's cyclical nature, potential capacity additions and competition from China. Analyst Matt Bryson also said Sandisk's longer-term earnings outlook could prove conservative.
Sandisk expects revenue growth in the mid-to-high teens from fiscal 2028 through fiscal 2030, alongside gross margins near 80%. The company also projects adjusted free cash flow margins around 50% and cited $93.9 billion in contracts tied to its newer business models.
Those agreements include $91.1 billion in remaining performance obligations, potentially giving Sandisk greater visibility into future demand. Management also expects mid-teens bit growth in fiscal 2027, with modest sequential pricing gains.
