TLDR
- Citi raised its price target on SanDisk to $2,025 from $1,300, implying 52% upside from Monday’s close of $1,333.01
- SanDisk stock has risen 3,218% over the past 12 months, driven by demand for eSSD storage in AI data centers
- Kioxia’s strong earnings — with ~85% quarter-over-quarter revenue growth — reinforced the bullish case for the storage sector
- SanDisk’s $6 billion buyback program could push EPS higher, with Citi estimating a $2 EPS gain for every 1% reduction in share count
- 20 of 26 analysts rate SanDisk a Buy, with Citi now the fifth firm to set a price target of $2,000 or higher
SanDisk stock was trading at $1,294.07 in premarket Tuesday, down 2.9% from Monday’s close of $1,333.01, even as Citi lifted its price target sharply to $2,025.
That new target, up from $1,300, implies around 52% upside from current levels. Citi analyst Asiya Merchant kept a Buy rating on the stock.
The call comes off the back of a massive 12-month run. SanDisk has climbed 3,218% over that period, fueled by surging demand for its enterprise solid-state drives in AI data centers.
Merchant said the supply-demand setup remains “highly favorable,” with customer conversations pointing to strong demand persisting through 2030.
Kioxia’s latest earnings gave that view some extra weight. The Japanese storage company reported roughly 85% quarter-over-quarter revenue growth and guided for 75% sequential growth in the current period — both ahead of Wall Street expectations.
Buybacks Add Another Layer
SanDisk’s $6 billion share repurchase program is also in focus. Announced last quarter, it represents about 3% of the company’s current market cap.
Citi estimates that for every 1% reduction in share count, earnings per share rise by around $2. Importantly, buybacks aren’t currently built into Citi’s model — meaning the $2,025 price target may actually be conservative.
Free cash flow is growing, and Citi expects the buyback authorization to increase alongside it.
Wall Street Still Broadly Bullish
SanDisk has broad analyst support despite its extraordinary run. Of 26 firms tracked by FactSet, 20 rate the stock a Buy. Only one rates it a Sell.
Citi is now the fifth firm to set a price target at $2,000 or above.
The stock’s rise has been built on its role as a key supplier of eSSD storage for AI infrastructure. That demand driver has not gone away.
Kioxia’s blowout quarter suggests the storage market is still running hot. Pricing remains strong and customer commitments are extending further out on the calendar.
SanDisk premarket on Tuesday sat at $1,294.07, with the broader market digesting Citi’s upgraded outlook alongside ongoing sector momentum.
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