Citi Lifts SanDisk Target 56% to $2,025, Forecasts 186% NAND Price Rise
SNDK•Citi analyst Asiya Merchant raised SanDisk’s price target by 56% to $2,025, citing strong storage demand, tighter supply and AI-driven pricing trends while forecasting 186% NAND and 265% eSSD average selling price growth in 2026. The company’s $6 billion share buyback and potential supply constraints from a Samsung strike could help sustain gross margins above 80% and bolster EPS.
1. Citi Raises Price Target
Citi analyst Asiya Merchant increased SanDisk’s price target from $1,300 to $2,025 and maintained a Buy rating. The firm forecasts NAND ASP to climb 186% and eSSD prices to jump 265% in 2026, driven by robust storage demand, tighter supply and AI-driven pricing dynamics.
2. Share Buyback Supports Margins
SanDisk’s $6 billion share repurchase authorization is expected to underpin earnings per share and help maintain gross margins above 80%. Merchant highlighted long‐term volume agreements that provide revenue visibility and margin stability as volumes rise.
3. Supply Tightness from Samsung Strike
A planned 18-day strike by 48,000 Samsung Electronics workers could disrupt memory production, potentially tightening DRAM and NAND supply. SanDisk shares rose 2.2% on premarket optimism that any supply shortfall will strengthen pricing power and support revenue growth.
4. CEO Sees Persistent Undersupply
SanDisk’s CEO forecasts the memory market will remain undersupplied as AI workloads drive higher demand for flash storage. He emphasized that evolving AI applications are reshaping product mix and pricing trends, reinforcing the company’s long-term growth outlook.
