GF Securities upgraded SanDisk Corp. (SNDK) to a Buy rating. The firm established a new price target of $1,277 per share. SanDisk shares climbed 2.6% in pre-market trading following the announcement.
Tightening supply and demand dynamics in the smartphone market drove the upgrade. GF Securities expects these conditions to support higher pricing strategies.
The firm projects third-quarter revenue will reach $4.9 billion. Third-quarter margins are expected to hit 71.5%. Fourth-quarter revenue guidance could exceed $10 billion. Projected margins for the final quarter may top 84%.