Wedbush Pounds the Table—Buy Sandisk Before August 5 Earnings

Summary

Wedbush is making a bold call on memory chip maker Sandisk NASDAQ: SNDK. The firm aggressively raised its targets for revenue, earnings, and stock price, citing pricing trends and a high likelihood that management had underestimated the strength. Sandisk Today$1,730.35 +56.38 (+3.37%) As of 10:16 AM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$40.10▼$2,354.39P/E Ratio60.52Price Target$1,765.19 Wedbush hiked its revenue and earnings targets by quadruple-digit basis points, pushed both above consensus, and warned that even these aggressive moves may understate the company's strength.Get Sandisk alerts:Sign Up As it stands, Wedbush sees revenue approaching $9 billion for the fiscal 4th quarter, earnings per share exceeding $37.50, and the strengths persisting into subsequent years. The long-term forecast echoes one issued by SK hynix's NASDAQ: SKHY CEO, suggesting that memory chip market constraints will persist at least until 2028, as capacity ramps take time and demand is just that high. As it stands, consensus forecasts suggest revenue of $8.33 billion and adjusted earnings per share of $34, representing more than 11,000% growth over the prior year. Sandisk Stock Can Double in Price From HereSandisk Stock Forecast Today12-Month Stock Price Forecast:$1,765.195.45% UpsideModerate BuyBased on 25 Analyst RatingsCurrent Price$1,673.97High Forecast$3,250.00Average Forecast$1,765.19Low Forecast$235.00Sandisk Stock Forecast Details Wedbush isn’t the only analyst doubling down on their Sandisk targets in early Q3. Analyst trends include increasing coverage, firming sentiment, a Moderate Buy consensus rating, an 84% Buy-side bias among 25 analysts tracked, and an uptrend in the consensus price target. As aggressive as Wedbush’s 62% price target increase, its $2,000 forecast falls far short of the high-end range. Revisions in early July put this market in the $3,000 to $3,200 range, sufficient for nearly 100% upside from mid-July supp...