BofA Keeps Buy Rating on Sandisk, Maintains $2,500 Target With 85% Upside
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Bank of America reaffirmed its buy rating on memory-chip maker Sandisk and maintained a $2,500 price target following the company’s latest earnings report.
The bank sees about 85% upside from the current share price, TheStreet reported on August 7. It said the market still underestimates the durability of Sandisk’s earnings power.
BofA said the storage memory semiconductor market has historically been cyclical. But a recent surge in demand from AI data centers, growth in enterprise high-performance solid-state drives, and long-term supply agreements with customers are driving a structural shift in the NAND industry, it wrote.
The bank also struck an upbeat tone on earnings. BofA projects Sandisk’s earnings per share will climb to about $233.85 in the next fiscal year. It added that the stock trades at only about six times forward earnings, versus about 12 times for rival Micron, making Sandisk markedly more attractive on valuation.
