Cantor Fitzgerald on Tuesday increased its price objective on SanDisk (NASDAQ:SNDK) to $800.00 from $550.00 and left its rating at Overweight, pointing to recent operational momentum and a materially upgraded outlook. The stock was trading at $611.43 as of the reported update, having advanced 127% year-to-date and an exceptional 1,398% over the prior 12 months. InvestingPro data cited by analysts indicates the relative strength index is in overbought territory, a technical signal that market participants may want to watch ahead of SanDisk's next earnings report, scheduled for February 6.
The price target increase follows a stronger-than-anticipated quarter and a March-quarter guidance figure that far outstrips both Cantor's own forecast and broader consensus. SanDisk projected March quarter earnings per share of $13, well above Cantor Fitzgerald's prior projection of $7.00 and the consensus estimate of $5.11. InvestingPro data referenced by the firm shows nine analysts have already revised their earnings projections upward, with a full-year EPS forecast of $14.12. While the company has not been profitable over the last twelve months, analysts collectively expect profitability this year.
Cantor Fitzgerald's outlook for SanDisk's revenue and profitability rests largely on rapid average selling price (ASP) increases. The firm noted implied ASP growth of more than 50% quarter-over-quarter in March, following a greater-than-30% sequential rise in December. Those pricing gains contribute to a guided gross margin of 67% for the upcoming quarter, a marked improvement from SanDisk's last reported gross margin of 34.8%.
Demand trends underpinning the guidance include a strong data center segment and a resilient consumer market. SanDisk reported data center revenue growth of 64% in the December quarter, driven in part by AI and inference workloads, while consumer demand rose 50% year-over-year. Overall revenue increased 23.6% in the most recently reported period, and analysts are modeling 52% revenue growth for the current fiscal year.
As a result of the company's pricing power and the favorable near-term demand environment, Cantor Fitzgerald has substantially raised its multi-year earnings projections for SanDisk. The firm now models calendar-year EPS of $77.00 for 2026 and $91.00 for 2027, up from prior estimates of $21.00 and $25.00, respectively. Cantor attributes these revisions to strengthened pricing that should provide near- and intermediate-term tailwinds to profitability.
Other sell-side firms have similarly lifted targets and forecasts in response to the company's earnings and guidance. SanDisk's second-quarter revenue rose 31% to $3.0 billion, above a consensus of $2.67 billion, and non-GAAP EPS came in at $6.20 versus an expected $3.49. Following those results, Bernstein SocGen Group raised its price target to $1,000 from $580 and kept an Outperform rating, while Mizuho boosted its target to $710 from $600, pointing to strong AI-driven demand and reporting fourth-quarter revenue of $3.03 billion that exceeded expectations.
Looking forward, SanDisk guided first-quarter revenue to $4.60 billion, a 52% sequential increase and markedly higher than the consensus estimate of $2.95 billion. Several firms adjusted their targets in response: Jefferies moved its target to $700 from $600, citing rising NAND demand and a projected step-function increase in earnings; Goldman Sachs raised its target to $700 from $320 and maintained a Buy rating, noting the company's quarter and guidance surpassed market expectations.
Summary of key financial and market points contained in the updates and guidance:
- Price target raised by Cantor Fitzgerald to $800 from $550; Overweight rating maintained.
- SanDisk shares trading at $611.43, up 127% YTD and 1,398% over the past year.
- March-quarter EPS guidance of $13 versus Cantor's prior $7.00 and consensus $5.11.
- Guided gross margin of 67% versus last reported gross margin of 34.8%.
- Data center revenue growth of 64% in the December quarter; consumer demand up 50% year-over-year.
- Second-quarter revenue of $3.0 billion and non-GAAP EPS of $6.20, both ahead of estimates.
Investors should weigh the increasingly bullish analyst positioning against the sharp share-price appreciation and technical indicators. The bullish revisions from multiple firms reflect a consistent interpretation of SanDisk's recent results and forward guidance, but the stock's recent run and overbought reading are factors market participants may monitor in the near term.