Core Viewpoint - Morgan Stanley has raised its price target on SanDisk to $230 from $96, maintaining an Overweight rating due to favorable industry pricing trends and upcoming product launches that could drive further upside [1] Group 1: Price Target and Rating - Morgan Stanley increased the price target for SanDisk to $230 from $96 while keeping an Overweight rating [1] - The near-term risk-reward profile has become more balanced as shares have risen, but the firm remains bullish in the long term [2] Group 2: Industry Trends and Pricing - NAND pricing has increased by 10–15% or more in both the fourth and first quarters, supporting expectations for several quarters of upward revisions [2] - The report indicates that NAND supply growth remains constrained, with demand heavily reliant on the PC and mobile markets, where the firm has lower conviction compared to datacenter demand [4] Group 3: Product Launch and Market Share - The upcoming launch of SanDisk's new enterprise eSSD products built on the BiCS8 process is seen as a potential catalyst for market share gains [3] - Despite strong technical specifications, visibility remains limited, and performance proof points will be crucial for sustaining momentum [3] Group 4: Valuation and Investor Confidence - SanDisk is trading at approximately 21 times projected 2026 earnings, indicating that investor confidence in the company's through-cycle earnings power and industry longevity will be essential for further multiple expansion [4]
Morgan Stanley Doubles SanDisk Price Target, Maintains Overweight Rating