Shares of SanDisk Corp. extended their sharp rally on Monday, climbing more than 16% as investors continued to respond to the flash memory maker’s stronger-than-expected quarterly results and an increasingly bullish outlook from Wall Street analysts.
This move follows a stock run that was dramatic following the release of earnings for its second quarter last week.
SanDisk’s shares are up nearly 143% in just one month, and roughly 1,756% for the last year. This reflects renewed confidence about the company’s ability to generate profits amid tight supply of flash memory.
Earnings beat resets expectations
SanDisk announced its second quarter fiscal 2026 results Jan. 29. The performance was materially better than the market’s expectations.
The company reported revenue of $3.03billion for the third quarter. This represents a 31 percent sequential growth and surpasses Street expectations of $2.64billion.
The profitability was also far above the consensus. SanDisk’s adjusted earnings per shares for the third quarter were $6.20, which is nearly twice the analyst consensus of $3.33.
This earnings surprise reflects the tightening of flash memory prices as the market has recovered faster than the supply.
This momentum was reinforced by the company’s financial guidance.
SanDisk’s fiscal third-quarter forecast is for revenue to be at the midpoint at $4.6 billion, and earnings adjusted at the midpoint at $14 per share. These figures indicate a significant increase in sales as well as profitability compared with the second-quarter.
SanDisk shares are a strong investment for analysts
After the release of earnings, many analysts re-evaluated their assumptions.
Barclays is the latest company to increase its target price on the stock. Tom O’Malley, an analyst at Barclays, raised his price target from $385 to $750 while keeping the same Equal Weight rating.
O’Malley’s neutrality was not altered, but the size of the increase in the price target reflected the re-evaluation of SanDisk’s earnings trajectory for the near future after its earnings surprise and revised guidance.
Even analysts who are more conservative acknowledge the revised target, which implies that they underestimated the pace and size of the current economic upcycle.
Bernstein has taken a bullish stance. SanDisk’s price target was raised to $1000 from $580. The rating of Outperform was also reiterated.
Mark C. Newman, an analyst at Newman & Associates Inc. described the third quarter as “a significant beat and guide,” noting what he called a strong pricing climate across all flash memory products.
Bernstein believes that the recent results and the outlook are the start of a new phase in earnings for the company.
According to the most recent figures, the company raised its estimate for fiscal 2026 to $38.92 per share and its estimate for fiscal 2027 to $90.96, which is roughly 188% higher than current consensus estimates.
Pricing is a recurrent theme of analyst comments. SanDisk’s results indicated that, in addition to volume growth, higher prices are playing an important role in the company’s earnings acceleration.
Analysts point to a return in key markets’ demand and disciplined additions of supply across the sector as reasons for sustained price strength.
This environment helped to drive the rapid revaluation of SanDisk’s shares. Recent gains reflect not only earnings that are expected in near term, but also an expectation that margins will be higher than originally assumed.
The post SanDisk stock rockets 16% again today: Why analyst see more upside may be updated as new information unfolds.
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