Sandisk Corp. (NASDAQ:SNDK) is drawing fresh bullish interest on Wall Street as Evercore ISI initiates coverage with an Outperform rating and a $1,200 price target, implying roughly 28% upside from recent levels based on the firm's analysis of earnings power and multiple expansion. 

SNDK – AI Winner

The firm argues that Sandisk is rapidly transitioning from a cyclical memory supplier to a structural AI infrastructure winner, supported by durable NAND demand, tighter supply, and a favorable mix shift toward enterprise and cloud workloads. 

Evercore sees a multi‑year runway for both earnings growth and valuation re‑rating as AI training, vector databases, and enterprise SSD adoption accelerate, while structural supply discipline and capital constraints keep the current cycle tighter and more profitable than past upswings.

On the demand side, Evercore highlights that NAND is still in the early innings of a multi‑year expansion, with AI‑driven data growth and the rise of enterprise SSDs underpinning bit growth and pricing power. 

Strategic customer agreements are locking in minimum pricing and prepayments, giving Sandisk improved visibility and cushioning against typical spot price volatility. 

Industry supply growth is capped as capital flows toward HBM and DRAM rather than incremental NAND capacity. 

This backdrop, the firm argues, should make the current upcycle more durable, with ASPs holding up better than in prior cycles and margins structurally higher even when supply eventually normalizes.

Evercore also sees a powerful internal mix and cost story. 

The report notes that Sandisk's revenue is shifting toward enterprise and hyperscale customers, where demand is less price‑sensitive and margins are structurally richer than in client devices. 

The Kioxia joint venture is cited as a clear cost advantage, allowing Sandisk to scale manufacturing without carrying the full capex burden while the BiCS8 218‑layer NAND ramp drives step‑function gains in density, bandwidth and cost per bit. 

Combined with disciplined opex and through‑cycle free‑cash‑flow focus, Evercore believes these factors support "through‑cycle" earnings that are structurally higher than in previous cycles, helping justify a premium multiple on out‑year EPS.

SNDK – Earnings, Valuation 

From a stock‑specific perspective, Evercore frames the opportunity around both earnings growth and a valuation disconnect. 

The firm models a credible path to more than $130 in EPS by FY27, driven by sustained ASP strength, faster cost declines, over 20% bit shipment growth, a richer enterprise mix and the introduction of buybacks as the balance sheet has swung to net cash. 

Yet SNDK shares trade at about 8 times out‑year earnings—below historical averages and not fully reflecting the improved supply‑demand setup or AI‑driven mix shift—leaving room, in Evercore's view, for multiple expansion toward its $1,200 target. 

Key upside levers include continued pricing strength, execution on data‑center design wins, and further strategic agreements with cloud and OEM customers. 

However, the firm flags supply response from Asian competitors and any slowdown in AI spending as the main risks that could pressure margins and re‑introduce earnings volatility.

SNDK Stock Price: According to data from Benzinga Pro, Sandisk stock was down 2.76% at $926.24 at the time of publication Tuesday.

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