Evercore Initiates Outperform on Sandisk with $1,200 Target Citing 2,740% Surge
Sandisk shares have climbed 2,740% over the past year, and Evercore ISI initiated coverage with an Outperform rating and a $1,200 price target implying 26% upside from current levels near $952. Analysts highlight a resilient NAND upcycle fueled by AI-driven demand, strategic contractual agreements and Sandisk’s joint venture with Kioxia covering 40% of production, as well as a shift toward data center sales expected to exceed 20% of revenue by fiscal 2027.
1. Evercore Coverage Initiation
Evercore ISI kicked off coverage of Sandisk with an Outperform rating and set a $1,200 price target, implying 26% upside from recent levels near $952 and outlining a bull case of $2,600.
2. AI-Driven NAND Upcycle
Analysts point to AI-driven data storage demand and long-term strategic contractual agreements as key factors tightening the NAND supply-demand balance, supporting elevated pricing through at least 2027.
3. Kioxia Joint Venture Benefits
Sandisk’s joint venture with Kioxia grants access to roughly 40% of NAND production capacity without full capital investment, enhancing through-cycle margins, free cash flow and capital efficiency compared with fully integrated peers.
4. Data Center Revenue Shift
Sandisk is increasing its focus on higher-margin data center customers, which currently account for under 15% of sales but are expected to exceed 20% by fiscal 2027 with the ramp of its BiCS8 218-layer NAND chips.