Sandisk in focus as JPMorgan starts coverage with Neutral; Susquehanna ups target...

Sandisk (SNDK) was in focus on Monday as J.P. Morgan started coverage on the memory maker with a Neutral and Susquehanna upped its price target on the stock.

“While Sandisk offers leverage to the AI-driven enterprise solid state disk (eSSD) supercycle (albeit with much smaller AI exposure compared to peers) and a structurally advantaged cost base via its Kioxia JV, we view current pricing power as a cyclical peak rather than a structural reset,” J.P. Morgan analyst Harlan Sur wrote in a note to clients. “Capacity ramps slated for 2027+ threaten to erode the current healthy supply/demand situation, just as traditional end-market demand growth matures, likely capping long-term multiple expansion. Given the 300%+ YTD outperformance in the stock, we see risk-reward as balanced, with near-term upside from an extended upcycle offset by the risk of earnings normalization as the industry reverts to its historical boom-bust pattern.” Sur has a $235 price target on Sandisk.

In addition to the coverage from J.P. Morgan, Susquehanna raised its price target on Sandisk to $300 from $250.

Sandisk shares rose 3.8% in premarket trading.