Citi Hikes SanDisk Target to $2025 as Memory Shortages Persist
SanDisk shares dipped 3.6% today despite Citi Research boosting its buy rating and raising the stock’s price target by 56% to $2,025, citing persistent flash-memory shortages and increased share buyback programs. Industry analysts project NAND supply deficits through 2028, supporting 80%+ margins for flash-memory suppliers.
1. Price Target Increase and Stock Pullback
SanDisk stock fell 3.6% today even as Citi Research reiterated its buy rating and lifted its price target from $1,300 to $2,025, reflecting a 56% increase. Analysts cited ongoing flash-memory shortages and the company’s expanded share repurchase program as catalysts for the upward revision.
2. Analyst Sentiment and Short Interest
Of the 22 analysts covering the stock, 18 maintain a buy or better rating, underscoring bullish consensus despite recent volatility. Short interest declined 11% over two weeks and is down 34% month-over-month, yet 7.74% of the float remains sold short.
3. Supply Constraints Driving Margin Outlook
Market experts expect NAND supply deficits to persist through 2028, bolstering flash-memory pricing power and sustaining margins above 80% for suppliers. Hard-drive margins near 50% could also expand if capacity constraints endure, supporting sector-wide earnings growth.