SanDisk’s $2000 Price Target Call Turns Heads After Blockbuster Quarter – Long-Term Contracts Driving Bull Case

• Susquehanna analysts also noted that a third of SanDisk’s fiscal 2027 revenue is now contracted, and they see similar trends persisting in 2028 and beyond.
• The firm also stated that SanDisk’s commitment to allocating 50% of its free cash flow to stock buybacks over the next two years will drive a 10% earnings accretion.
• Analysts at Citi stated that the announcement of long-term customer agreements reduces the risk of cyclicality that SanDisk faces otherwise.

SanDisk Corp. (SNDK) shattered Wall Street estimates with its third-quarter (Q3) earnings, but analysts highlighted the five long-term customer agreements as the key takeaway of the semiconductor company’s announcement.

Analysts at Susquehanna were the most bullish on SanDisk’s prospects, doubling their price target to $2,000 from $1,000 while noting increased revenue visibility, according to TheFly. The firm has a ‘Positive’ rating on SNDK stock.

SanDisk shares were down more than 6% in Friday’s pre-market trade. SNDK was among the top trending tickers on Stocktwits at the time of writing.

SanDisk’s Customer Agreements Reduce Cyclicality Risk, Say Analysts

Susquehanna analysts also noted that a third of SanDisk’s fiscal 2027 revenue is now contracted, while adding that they see similar trends persisting in 2028 and beyond. The firm also stated that SanDisk’s commitment of using 50% of its free cash flow for stock buybacks over the next two years will drive a 10% accretion in earnings.

Analysts at Citi stated that the announcement of long-term customer agreements reduce the risk of cyclicality that SanDisk faces otherwise. The firm hiked its price target for SNDK stock to $1,300 from $980 while keeping a ‘Buy’ rating.

Jefferies highlighted that some of SanDisk’s long-term customer agreements stretch beyond 2030, while adding that the company remains one of its favorites. The firm stated that SanDisk’s Q3 report was “very strong,” while hiking its price target to $1,400 from $1,000 with a ‘Buy’ rating.

Wells Fargo stated in its note that SanDisk’s New Business Model disclosures materially reduced the downside risk and improved the revenue visibility. The firm hiked its price target to $1,250 from $975, while keeping an ‘Equal Weight’ rating on the stock.

Barclays hiked its price target for SanDisk to $1,200 from $750 while maintaining an ‘Equal Weight’ rating on the stock. The firm stated that SanDisk’s color regarding the customer agreements provides more confidence with respect to the company’s medium-term outlook.

SanDisk Says Customer Commitments Backed By Financial Guarantees

SanDisk CEO David Goeckeler stated during an earnings call on Thursday that the customer commitments received by the company are backed by firm financial guarantees.

“Last quarter, we were engaged in discussions with customers on multi-year supply partnerships, what we refer to as new business models or NBMs. I am pleased to share that we have successfully advanced those conversations with five multi-year partnerships signed so far. These partnerships are structured to lock in committed supply for our customers and committed financials for SanDisk,” he added.

He said this represents a fundamental shift in the company’s business, focused on closer customer alignment, greater revenue visibility, and long-term value creation.

“While we have made substantial progress, there are significant growth opportunities ahead, driven by the fundamental shift in underlying infrastructure requirements of artificial intelligence,” Goeckeler added.

SanDisk reported earnings per share (EPS) of $23.41 on revenue of $5.95 billion, compared to Wall Street estimates of an EPS of $14.66 on revenue of $4.73 billion, according to Fiscal.ai data.

The company forecast fourth-quarter (Q4) EPS of $30 to $33, on revenue of $7.75 billion to $8.25 billion. Wall Street expects SanDisk to report EPS of $23.44 on revenue of $6.63 billion.

How Did Retail Traders React?

Retail sentiment on Stocktwits around SanDisk trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.

One bullish user recommended investors buy the dip in the SanDisk stock.

Another user stated that they love the SNDK stock and that they’ve held it since it was at $500.

SNDK stock is up 362% year-to-date and 3,315% over the past 12 months. The S&P 500 ETF (SPY) is up 30% over the past 12 months, while the Vanguard Growth Index Fund ETF (VUG) is up 32%.

The Invesco QQQ Trust (QQQ) is up 40% during this period, while the State Street Technology Select Sector SPDR ETF (XLK) is up 52%.

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