Bernstein raised its SanDisk price target to $3,000. The previous price target was $1,700. The firm maintains an Outperform rating on the stock.
Analysts believe new long-term agreements for AI memory will stabilize earnings. These contracts aim to reduce the volatility typical of the cyclical memory industry.
Bernstein identifies a competitive advantage in SanDisk’s contract structure over Micron. These deals span three to five years. The contracts include upfront financial guarantees.
Dynamic protection provides superior insulation during industry downturns. Bernstein argues current stock valuations do not yet reflect this downside protection.