Sandisk Unveils New Business Model Agreements to Enhance Revenue Stability
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SNDK?
Source: seekingalpha
- New Business Model Agreements: Sandisk signed five New Business Model agreements during its Q3 earnings release, covering over one-third of FY27 bits, with a minimum revenue of $42 billion and the longest deal lasting five years, significantly enhancing revenue visibility and stability.
- Positive Market Reaction: Sandisk's shares rose 4% in early trading, reflecting investor optimism regarding the new agreements, with analysts generally believing these deals will reduce the company's cyclical volatility and enhance long-term growth potential.
- Analyst Rating Upgrades: Morgan Stanley maintained an Overweight rating on Sandisk with a price target of $1,100, while Citi Research raised its target from $980 to $1,300, indicating strong market confidence in Sandisk's future performance.
- Optimistic Future Outlook: Sandisk expects to sign more agreements, with ongoing negotiations with several customers, and analysts widely believe these deals will help the company achieve more sustainable profitable growth in the NAND market, despite potential short-term pricing pressures.
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Analyst Views on SNDK
Wall Street analysts forecast SNDK stock price to fall
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 1096.510
Low
220.00
Averages
283.69
High
410.00
Current: 1096.510
Low
220.00
Averages
283.69
High
410.00
About SNDK
SanDisk Corporation is a developer, manufacturer and provider of data storage devices and solutions based on NAND flash technology and has consumer brands and franchises globally. The Company's solutions include a range of solid state drives (SSDs) embedded products, removable cards, universal serial bus (USB) drives, and wafers and components. Its broad portfolio of technology and products addresses multiple end markets of Datacenter, Edge and Consumer. Its Datacenter end market is composed primarily of products for public or private cloud environments and enterprise customers. The Company, through the Edge end market, provides original equipment manufacturer and channel customers a broad array of high-performance flash solutions across personal computer, mobile, gaming, automotive, virtual reality headsets, at-home entertainment, and industrial spaces. The Company serves the Consumer end market with a broad range of retail and other end-user products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SANDISK STOCK DROPS 3.1% FOLLOWING Q3 REPORT
- Stock Performance: Sandisk shares fell by 3.1% following the release of their Q3 results.
- Market Reaction: The decline in stock price indicates a negative market reaction to the company's quarterly performance.
- Financial Overview: The Q3 results may have revealed challenges or disappointments that affected investor confidence.
- Future Outlook: Analysts and investors will likely be closely monitoring Sandisk's future performance and strategies in response to this downturn.
See More
Sandisk Unveils New Business Model Agreements to Enhance Revenue Stability
- New Business Model Agreements: Sandisk signed five New Business Model agreements during its Q3 earnings release, covering over one-third of FY27 bits, with a minimum revenue of $42 billion and the longest deal lasting five years, significantly enhancing revenue visibility and stability.
- Positive Market Reaction: Sandisk's shares rose 4% in early trading, reflecting investor optimism regarding the new agreements, with analysts generally believing these deals will reduce the company's cyclical volatility and enhance long-term growth potential.
- Analyst Rating Upgrades: Morgan Stanley maintained an Overweight rating on Sandisk with a price target of $1,100, while Citi Research raised its target from $980 to $1,300, indicating strong market confidence in Sandisk's future performance.
- Optimistic Future Outlook: Sandisk expects to sign more agreements, with ongoing negotiations with several customers, and analysts widely believe these deals will help the company achieve more sustainable profitable growth in the NAND market, despite potential short-term pricing pressures.
See More
SANDISK CORP: BARCLAYS INCREASES TARGET PRICE FROM $750 TO $1,200
- Stock Price Increase: Barclays has raised the target price for Sandisk Corp's stock from $750 to $1,200.
- Market Implications: This significant increase reflects positive expectations for Sandisk's performance in the market.
See More
Apple's Strong Earnings Propel Stock Market Higher
- Apple's Earnings Surprise: Apple reported a projected revenue increase of 14% to 17% for the June quarter, significantly exceeding the Street's expectation of 9%, which solidifies its leadership position in the tech industry.
- Record Services Revenue: The company's services revenue reached an all-time high of $30.97 billion, up 16% year-over-year, indicating strong growth potential in its digital services segment and expected to drive future revenue growth.
- Positive Market Reaction: Apple's stock rose by 3.5%, with Wells Fargo raising its price target from $300 to $310, reflecting market optimism regarding its future performance.
- Memory Price Concerns: Despite Sandisk's earnings beating expectations, its shares fell 5%, highlighting market concerns over rising memory chip prices, which could impact overall industry profitability.
See More
Latest Wall Street Rating Updates
- Apple's Positive Outlook: Bank of America reiterates a buy rating on Apple, forecasting that iPhone revenues will exceed expectations in 2026 due to record upgraders and strong gross margins despite commodity pressures, indicating sustained competitiveness in the smartphone market.
- Roblox Demand Slowdown: Bank of America downgrades Roblox to neutral, citing a significant decline in platform demand; while acknowledging its ability to compress development costs, the uncertainty around the timeline for demand recovery may impact its market performance.
- CoreWeave Growth Potential: Citi reiterates CoreWeave as a buy, raising its price target from $126 to $155, estimating a quarterly growth of 35-40% in AI infrastructure, showcasing strong performance across a diversified customer base.
- Hershey's Positive Outlook: TD Cowen upgrades Hershey to buy, expressing confidence that the company will raise its 2026 guidance and return to volume growth in 2027, reflecting strong recovery potential in the confectionery market.
See More
SanDisk's Long-Term Customer Agreements Mitigate Cyclicality Risk
- Revenue Contract Stability: A third of SanDisk's fiscal 2027 revenue is now contracted, with analysts expecting this trend to persist into 2028 and beyond, thereby enhancing the predictability and stability of the company's revenue stream.
- Stock Buyback Commitment: SanDisk's commitment to allocate 50% of its free cash flow to stock buybacks over the next two years is projected to drive a 10% increase in earnings per share, further boosting investor confidence in the stock.
- Analyst Rating Upgrades: Susquehanna raised its price target for SanDisk from $1,000 to $2,000, reflecting strong optimism about the company's growth prospects, while Citi and Jefferies also increased their targets, indicating market recognition of its long-term outlook.
- Strong Earnings Report: SanDisk reported earnings per share of $23.41, exceeding Wall Street's expectation of $14.66, with revenue of $5.95 billion significantly surpassing the anticipated $4.73 billion, showcasing the company's robust performance in the semiconductor sector.
See More
SANDISK STOCK DROPS 3.1% FOLLOWING Q3 REPORT
- Stock Performance: Sandisk shares fell by 3.1% following the release of their Q3 results.
- Market Reaction: The decline in stock price indicates a negative market reaction to the company's quarterly performance.
- Financial Overview: The Q3 results may have revealed challenges or disappointments that affected investor confidence.
- Future Outlook: Analysts and investors will likely be closely monitoring Sandisk's future performance and strategies in response to this downturn.
See More
Sandisk Unveils New Business Model Agreements to Enhance Revenue Stability
- New Business Model Agreements: Sandisk signed five New Business Model agreements during its Q3 earnings release, covering over one-third of FY27 bits, with a minimum revenue of $42 billion and the longest deal lasting five years, significantly enhancing revenue visibility and stability.
- Positive Market Reaction: Sandisk's shares rose 4% in early trading, reflecting investor optimism regarding the new agreements, with analysts generally believing these deals will reduce the company's cyclical volatility and enhance long-term growth potential.
- Analyst Rating Upgrades: Morgan Stanley maintained an Overweight rating on Sandisk with a price target of $1,100, while Citi Research raised its target from $980 to $1,300, indicating strong market confidence in Sandisk's future performance.
- Optimistic Future Outlook: Sandisk expects to sign more agreements, with ongoing negotiations with several customers, and analysts widely believe these deals will help the company achieve more sustainable profitable growth in the NAND market, despite potential short-term pricing pressures.
See More
SANDISK CORP: BARCLAYS INCREASES TARGET PRICE FROM $750 TO $1,200
- Stock Price Increase: Barclays has raised the target price for Sandisk Corp's stock from $750 to $1,200.
- Market Implications: This significant increase reflects positive expectations for Sandisk's performance in the market.
See More
Apple's Strong Earnings Propel Stock Market Higher
- Apple's Earnings Surprise: Apple reported a projected revenue increase of 14% to 17% for the June quarter, significantly exceeding the Street's expectation of 9%, which solidifies its leadership position in the tech industry.
- Record Services Revenue: The company's services revenue reached an all-time high of $30.97 billion, up 16% year-over-year, indicating strong growth potential in its digital services segment and expected to drive future revenue growth.
- Positive Market Reaction: Apple's stock rose by 3.5%, with Wells Fargo raising its price target from $300 to $310, reflecting market optimism regarding its future performance.
- Memory Price Concerns: Despite Sandisk's earnings beating expectations, its shares fell 5%, highlighting market concerns over rising memory chip prices, which could impact overall industry profitability.
See More
Latest Wall Street Rating Updates
- Apple's Positive Outlook: Bank of America reiterates a buy rating on Apple, forecasting that iPhone revenues will exceed expectations in 2026 due to record upgraders and strong gross margins despite commodity pressures, indicating sustained competitiveness in the smartphone market.
- Roblox Demand Slowdown: Bank of America downgrades Roblox to neutral, citing a significant decline in platform demand; while acknowledging its ability to compress development costs, the uncertainty around the timeline for demand recovery may impact its market performance.
- CoreWeave Growth Potential: Citi reiterates CoreWeave as a buy, raising its price target from $126 to $155, estimating a quarterly growth of 35-40% in AI infrastructure, showcasing strong performance across a diversified customer base.
- Hershey's Positive Outlook: TD Cowen upgrades Hershey to buy, expressing confidence that the company will raise its 2026 guidance and return to volume growth in 2027, reflecting strong recovery potential in the confectionery market.
See More
SanDisk's Long-Term Customer Agreements Mitigate Cyclicality Risk
- Revenue Contract Stability: A third of SanDisk's fiscal 2027 revenue is now contracted, with analysts expecting this trend to persist into 2028 and beyond, thereby enhancing the predictability and stability of the company's revenue stream.
- Stock Buyback Commitment: SanDisk's commitment to allocate 50% of its free cash flow to stock buybacks over the next two years is projected to drive a 10% increase in earnings per share, further boosting investor confidence in the stock.
- Analyst Rating Upgrades: Susquehanna raised its price target for SanDisk from $1,000 to $2,000, reflecting strong optimism about the company's growth prospects, while Citi and Jefferies also increased their targets, indicating market recognition of its long-term outlook.
- Strong Earnings Report: SanDisk reported earnings per share of $23.41, exceeding Wall Street's expectation of $14.66, with revenue of $5.95 billion significantly surpassing the anticipated $4.73 billion, showcasing the company's robust performance in the semiconductor sector.
See More
