Mizuho has lifted its price target on SanDisk (NASDAQ:SNDK) to $710.00 from $600.00 and maintained an Outperform recommendation on the shares. The new target is close to the analyst high of $700. At the time referenced in market data, the stock was trading at $539.30, near its 52-week high of $546.75, and technical indicators from InvestingPro suggested the shares were in overbought territory after a one-year gain of 1,398%.
SanDisk's fourth-quarter results drove much of the recent investor attention. The company reported revenue of $3.03 billion for the quarter, topping consensus estimates of $2.68 billion. For the first quarter, SanDisk guided revenue up 52% sequentially to $4.60 billion, a figure materially higher than the consensus expectation of $2.95 billion. InvestingPro data noted that analysts are revising forecasts upward for the upcoming period, with nine analysts having lifted earnings estimates.
Gross margin improvement underpins much of the optimism. Margins are projected to expand by 15 percentage points quarter-over-quarter to 66%, versus consensus estimates of 49.4%. In the fourth quarter the company said bit shipments rose by low single digits sequentially while average selling prices increased in the mid-30% range. Those price and mix dynamics were highlighted as central to SanDisk's path toward profitability; InvestingPro data showed the company had not been profitable over the prior twelve months but was expected to return to profitability in the current year.
Looking ahead, SanDisk expects first-quarter bit shipments to decline by mid-single digits, even as spot NAND prices have climbed 20-30% year-to-date. Contract prices were estimated to rise by more than 90% quarter-over-quarter in the first quarter of 2026. InvestingPro attributed a 127.19% year-to-date price return for the stock to these pricing trends.
Mizuho pointed to accelerating data-center revenue as a key positive, noting that two or more cloud service providers had qualified TLC and QLC BiCS8 technology. At the same time, the firm flagged potential near-term headwinds, including the possibility that Western Digital could sell 7.5 million SanDisk shares in February. SanDisk's next scheduled earnings release is on February 6. InvestingPro's Fair Value assessment was cited as indicating that the stock was currently overvalued, notwithstanding the company’s moderate leverage.
Additional market responses followed SanDisk's strong quarter. In an update covering the second quarter of fiscal year 2026, SanDisk reported earnings per share of $6.20 compared with a consensus projection of $3.49, a 77.65% surprise. Revenue for that period also came in at $3.03 billion, ahead of an expected $2.67 billion.
Following these results, several investment banks adjusted their targets for SanDisk. Jefferies raised its target to $700 from $600, citing an expected surge in earnings tied to higher NAND memory pricing. Goldman Sachs increased its target to $700 from $320, pointing to the company's quarterly outperformance and robust guidance. RBC Capital set a $650 target, referencing supply tightness in the NAND market, while Morgan Stanley lifted its target to $690 from $483 and described the current cycle as the strongest memory industry upcycle in three decades, referencing SanDisk’s forecast of more than 52% quarter-over-quarter revenue growth.
Context and implications
The compilation of stronger-than-expected results, aggressive guidance and rising NAND pricing has led multiple analysts to raise targets and revise earnings forecasts. Market participants citing InvestingPro metrics should note the combination of rapid share-price appreciation and the InvestingPro Fair Value assessment that signals potential overvaluation at current levels. The company’s margin trajectory, pricing environment and cloud-provider qualifications for new technology are central variables for the outlook.
Readers seeking deeper, model-based valuation analysis can reference comprehensive research products mentioned in InvestingPro coverage, which aggregate multiple valuation models and analyst reports across U.S. stocks.