Bernstein SocGen Group has elevated its price target on SanDisk (NASDAQ:SNDK) to $1,000 from $580 while maintaining an Outperform rating following the company's second-quarter financial report. The new target equals the highest analyst price objective currently set for SanDisk, whose shares have climbed 1500.69% over the past year, according to InvestingPro data.
SanDisk delivered second-quarter revenue of $3.0 billion, a 31% increase from the prior year and well above the consensus estimate of $2.67 billion. Management attributed the revenue expansion to a low-single-digit percentage increase in bits shipped combined with average selling prices that rose in the mid-30s percentage range. InvestingPro data shows the company’s revenue has risen 23.6% over the last twelve months.
The company's profitability metrics also outperformed expectations. SanDisk recorded a non-GAAP gross margin of 52.1%, materially higher than the consensus forecast of 42%. On the bottom line, non-GAAP earnings per share came in at $6.20 versus the consensus of $3.49. While SanDisk was not profitable over the trailing twelve months, InvestingPro tips indicate analysts expect the company to return to profitability this year, with EPS forecasts for fiscal year 2026 at $33.36.
In explaining Bernstein's decision to raise its target, analyst Mark C. Newman pointed to the "significant beat and guide to usher in the Year of the Fire-Horse," noting the firm's confidence in a "very strong pricing environment" as a key driver for the revision. The upbeat outlook is mirrored in SanDisk's market performance, where InvestingPro data shows a 22.4% price return over the past week.
Reflecting the stronger results and forward guidance, Bernstein increased its earnings per share projections substantially. The firm raised its fiscal year 2026 EPS estimate to $38.92 and its fiscal year 2027 estimate to $90.96, figures that Bernstein states are 188% above consensus forecasts.
Despite the bullish revisions, InvestingPro's Fair Value assessment flags SanDisk as trading above its estimated Fair Value. The assessment suggests investors should weigh the company's forward momentum against prevailing valuation metrics.
Other analyst shops also responded to SanDisk's quarter and guidance by lifting price targets. Cantor Fitzgerald raised its target to $800 from $550, citing the company's robust quarterly performance and guidance. Mizuho pushed its target to $710 from $600, pointing to demand driven by AI as a catalyst. Jefferies moved its target to $700 from $600, specifically highlighting expectations for a sizable earnings expansion tied to NAND memory pricing.
SanDisk provided additional topline disclosures that reinforced the firm's revenue trajectory. The company reported fourth-quarter revenue of $3.03 billion, beating the expected $2.68 billion, and projected first-quarter revenue of $4.60 billion, well above the consensus forecast of $2.95 billion.
The flurry of analyst upgrades and sharp EPS revisions underscores how the combination of stronger-than-expected unit economics and an elevated pricing environment has reshaped sell-side expectations. Still, the gap between heavily revised forward estimates and InvestingPro's Fair Value reading highlights an ongoing valuation debate among market participants.
Investors and industry observers should note the concentrated nature of the drivers behind the upgrades - namely pricing dynamics in NAND memory and related demand trends - and that these factors figure prominently in the consensus revisions and elevated price targets.