Rosenblatt Launches Coverage of Sandisk at Buy, $2,400 Price Target

Rosenblatt analyst Kevin Cassidy initiates coverage on SanDisk (NASDAQ: SNDK) with a Buy rating and a price target of $2,400.

“We are initiating coverage of Sandisk (SNDK) with a Buy rating and $2,400 12-month price target. New AI compute platforms are creating an opportunity to reposition NAND Flash (NAND) from a commodity storage medium to a more system-critical component of AI infrastructure.

Historically, consumer, PC, and smartphone NAND demand was driven primarily by rising density and falling cost per bit. In AI systems, however, expanding model sizes and data-intensive inference increasingly prioritize density, performance, endurance, and supply certainty over the lowest absolute price.

We believe positioning NAND closer to compute engines can increase its value to the overall system. Sandisk’s technology roadmap supports this opportunity. With technology and manufacturing partner, Kioxia, the company has advanced NAND process technology for roughly 25 years.

Its BiCS8 and BiCS10 platforms improve areal density and lateral scaling, enabling comparable die capacity with fewer 3D layers than certain competing approaches. We believe this can support a favorable bit-cost curve and sustain a performance-and-cost advantage in AI oriented enterprise storage.

Management’s FY28–FY30 framework calls for mid-to-high-teens revenue growth, approximately 80% Non-GAAP gross margin, 75% Non-GAAP operating margin, and 50% adjusted free-cash-flow margin. Management attributes its confidence in this four year outlook partly to New Business Model agreements with eight of the world’s largest NAND customers, which we estimate may cover approximately 65% of FY28 production.

These agreements could increase demand visibility and reduce historical NAND-cycle volatility. Based on the framework, we conservatively estimate FY30 Non-GAAP EPS of approximately $300 per share.”

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