SanDisk Secures $42B Contracts, Barclays Lifts Target to $2,300
SNDK•Barclays upgraded SanDisk to Overweight and raised its price target to $2,300 from $1,200 after securing three new contracts with minimum guaranteed revenue of $42 billion backed by $11 billion in financial guarantees. These deals run to 2031 with tiered pricing, shifting from fixed to variable rates.
1. Barclays Upgrade
Barclays upgraded SanDisk from Equal-weight to Overweight and raised its price target to $2,300 from $1,200, reflecting growing analyst confidence after the stock gained 2.97% intraday and has rallied over 4,000% in the past twelve months. The move places SanDisk near its 52-week high and signals expectations of continued market outperformance.
2. Contract Structure and Implications
SanDisk secured three contracts carrying $42 billion in minimum contractual revenue, supported by $11 billion in financial guarantees across five deals. These agreements span through 2031 with tiered pricing: near-term fixed rates transition to variable rates over time, reducing downside exposure while allowing SanDisk to capture upside if NAND prices rise.
