Goldman Sachs initiates SanDisk stock with Buy rating on improving NAND market
Investing.com
Published Jul 10, 2025 06:20AM ET
Investing.com - Goldman Sachs initiated coverage on SanDisk (NASDAQ:SNDK) with a Buy rating and a price target of $55.00 on Thursday. The target represents a potential 19% upside from the current price of $46.20, aligning with InvestingPro 's analysis showing the stock as slightly undervalued.
The investment bank cited improving fundamentals in the NAND memory industry as manufacturers make more prudent supply-side decisions, particularly by limiting production capacity. With a market capitalization of $6.7 billion and an overall Financial Health score of "FAIR" according to InvestingPro , SanDisk shows resilience in this evolving market landscape.
Goldman Sachs expects SanDisk's gross margins to improve significantly over the next several quarters as the company benefits from these industry trends.
The margin improvements will be driven by the roll-off of underutilization charges and startup costs that had previously weighed on profitability.
The firm also anticipates better than historical pricing dynamics in the NAND market, which should further support SanDisk's financial performance.
In other recent news, SanDisk has announced an increase in its secondary public offering to over 18 million shares, up from the initially planned 17 million shares. These shares, priced at $38.50 each, are held by Western Digital (NASDAQ:WDC), SanDisk's former parent company. Concurrently, SanDisk's stock has been the focus of several analyst ratings. Jefferies initiated coverage with a Buy rating, citing potential market share gains following the company's spin-off from Western Digital. Benchmark also maintained a Buy rating and raised its price target to $62, attributing this to AI-driven demand and data center spending. Citi joined in with a Buy rating, highlighting improvements in the NAND memory market and the potential for SanDisk to gain market share. BofA Securities initiated coverage with a Buy rating as well, pointing to favorable memory pricing dynamics and potential margin expansion. These developments reflect a positive outlook from analysts on SanDisk's future prospects in the memory chip industry.
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Written By: Investing.com
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