SanDisk targets $2,100 and $2,200 after securing $11B NBMs and pricing boost
SNDK•Bank of America raised SanDisk’s price target to $2,100 and Mizuho’s to $2,200, citing tight NAND supply and pricing momentum. SanDisk’s NBMs now cover over one-third of fiscal 2027 revenue with $11 billion in guarantees and $400 million prepayments, prompting BofA to lift fiscal 2027 revenue to $44 billion and EPS to $188.
1. Analyst Price Target Increases
Bank of America raised its SanDisk price objective to $2,100 from $1,550 and reiterated a Buy rating, while Mizuho lifted its target to $2,200 from $1,825 with an Outperform rating, both citing tight supply-demand conditions in the NAND flash market and strong near-term pricing momentum.
2. New Business Model Contracts
SanDisk has signed NBMs covering over one-third of its fiscal 2027 revenue, underpinned by more than $11 billion in financial guarantees and $400 million in prepayments. These contracts feature fixed initial pricing followed by variable pricing, designed to maintain margin guidance even if pricing hits the floor.
3. Revised Financial Outlook and Market Conditions
Following the NBMs and pricing strength, Bank of America raised fiscal 2027 revenue and EPS estimates to $44 billion and $188 respectively, up from $37.7 billion and $154. Analysts expect no significant new NAND supply until 2028, with AI-driven demand for enterprise SSDs and handset memory sustaining price momentum.
