SanDisk Corp.'s stock surged 5.02% in pre-market trading, marking a significant rebound following a sharp decline in the previous session.
The pre-market rally comes after multiple Wall Street firms issued sharply higher price targets for the memory storage company. Evercore ISI analyst Amit Daryanani raised his price target to $3,100 from $1,400, implying approximately 85% upside from the prior close, while maintaining an Outperform rating. Goldman Sachs also lifted its target from $1,200 to $2,200, reiterating a Buy rating.
Analysts cited the company's newly signed business model agreements as driving a "new memory paradigm" and providing increased visibility into earnings. They believe investors are "underappreciating" the durability of SanDisk's earnings per share and free cash flow in the coming years, with supply and demand dynamics expected to remain favorable through 2027.
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