BofA Lifts Sandisk Target to $900, Sees 63% ASP Jump in Q1
Bank of America raised Sandisk's price target to $900 from $850, forecasting a 63% quarter-over-quarter ASP increase for March and 20% growth in June due to tightening NAND supply. Activist investor Elliott's stake in Synopsys highlights its prior value creation at Sandisk, potentially signaling further catalysts for Sandisk shares.
1. Price Target Raised to $900
Bank of America extended Sandisk's valuation target from $850 to $900, reflecting confidence in sustained NAND pricing strength and long-term supply agreements driving profitability.
2. Record ASP Growth Forecast
Sandisk is expected to deliver a 63% quarter-over-quarter rise in average selling prices for March, with further 20% ASP growth in June as NAND supply tightens globally.
3. Elliott's Past Sandisk Success
Activist firm Elliott has taken a significant stake in Synopsys, drawing attention to its history of value creation at Sandisk and sparking speculation over potential activist interest in Sandisk itself.
4. Mixed Demand and Risk Factors
While AI server demand boosts revenue visibility, mixed PC market trends and potential pull-forward buying pose risks to second-half performance if memory prices normalize.