BofA Reiterates Buy on SanDisk, Keeps $2,500 Target With 85% Upside
Summary
- Bank of America reiterated its buy rating on SanDisk and kept its $2,500 price target.
- BofA said SanDisk has about 85% upside from its current share price and that the market is underestimating the durability of its earnings power.
- BofA said SanDisk could post $233.85 in EPS next fiscal year, with a forward P/E of about 6 times versus rival Micron’s 12 times P/E, underscoring its valuation appeal.
Forecast Trend Report by Period
Bank of America reiterated its buy rating and $2,500 price target on memory-chip maker SanDisk following the company’s latest earnings report.
TheStreet reported on August 7 that BofA sees about 85% upside from the stock’s current price. The bank said the market still underestimates the durability of SanDisk’s earnings power.
The storage-memory market has historically been cyclical, BofA said. But surging demand from artificial intelligence data centers, growth in enterprise solid-state drives, or eSSDs, and long-term supply agreements with customers are driving a fundamental shift in the NAND industry.
BofA also struck an optimistic tone on earnings. The bank projects SanDisk’s earnings per share for the next fiscal year will rise sharply to about $233.85. It added that the stock trades at only about six times forward earnings, making its valuation markedly more attractive than Micron’s, at about 12 times.
Doohyun Hwang
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