SanDisk (SNDK) shares climbed more than 3% on Monday after Goldman Sachs raised its price target on the memory-chip maker and pointed to expectations for a stronger quarterly performance.
Goldman increased its target price on SanDisk to $2,200 from $1,200 while maintaining a Buy rating. The firm said SanDisk could continue benefiting from tight supply conditions across the NAND memory market ahead of the company’s fiscal fourth-quarter results expected in August. NAND is a flash memory technology used in data storage devices and consumer electronics.
Goldman also said SanDisk may gain from changes in product mix as enterprise solid-state drive demand expands among large cloud and hyperscale customers. The firm raised estimates to reflect revised expectations for NAND pricing trends as well as higher operating costs.
SanDisk may also draw investor attention around updates tied to long-term supply agreements and future pricing conditions in the memory market.
