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business/news//Benzinga
Barclays analyst Tom O'Malley upgraded SanDisk to Overweight from Equalweight.
SanDisk has signed three contracts totaling $42 billion in minimum revenue last quarter.
KEY POINTS
Some SanDisk contracts now extend as far as 2031 and include over $11 billion in financial guarantees.
New contract structures blend fixed near-term with variable long-term pricing, benefiting SanDisk if prices rise.
Barclays upgraded SanDisk and raised its price target dramatically, citing these strategic contract changes.
Barclays Highlights Long-Term Contract Strategy
Barclays analyst Tom O'Malley upgraded SanDisk to Overweight from Equalweight and raised his price forecast to $2,300 from $1,200, arguing that the company's contract structure is changing the economics of the memory industry.
O'Malley said SanDisk's long-term agreements provide customers with both supply visibility and pricing flexibility through contracts extending as far as 2031.
The deals include quarterly volume commitments and combine fixed near-term pricing with variable long-term pricing, allowing SanDisk to benefit if memory prices continue rising.
Barclays added that SanDisk signed three contracts last quarter carrying roughly $42 billion in minimum contractual revenue, backed by more than $11 billion in financial guarantees across five agreements.
Traders also continued reacting to broader AI storage "supercycle" themes that frame rising memory prices as a longer-term structural shift rather than a temporary spike.
SanDisk Emerges As A Pure-Play AI Memory Story
SanDisk remains one of the world's largest NAND flash memory suppliers and manufactures its chips through a joint venture with Kioxia in Japan.
Investors increasingly view the company as a direct way to gain exposure to AI-driven storage demand because enterprise SSD shortages and data-center expansion can quickly translate into stronger pricing power for memory suppliers.
Earnings & Analyst Outlook
Looking further out, the next major catalyst for the stock arrives with the August 13, 2026 (estimated) earnings report.
EPS Estimate: $32.99 (Up from 29 cents YoY)
Revenue Estimate: $8.16 Billion (Up from $1.90 Billion YoY)
Valuation: P/E of 54.3x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $1064.11. Recent analyst moves include:
Citigroup: Buy (Raises forecast to $2025.00) (May 19)
Bernstein: Outperform (Raises forecast to $1700.00) (May 4)
Citigroup: Buy (Raises forecast to $1300.00) (May 1)
Price Action
SNDK Price Action: SanDisk shares were up 0.66% at $1600.00 at the time of publication on Wednesday. The stock is trading near its 52-week high of $1641.74, according to Benzinga Pro data.
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