Core Viewpoint - SanDisk Corporation is highlighted as a strong investment opportunity, with Morgan Stanley raising its price target and maintaining an Overweight rating despite market concerns regarding memory stocks [1][2][3]. Financial Performance - SanDisk reported record revenue of $2.3 billion for FQ1 2026, reflecting a sequential increase of 21% and a year-over-year rise of 23% [4]. - Non-GAAP EPS increased significantly to $1.22, up from $0.29 in the previous quarter [4]. - The company reduced Inventory Days from 135 to 115, indicating improved inventory management [4]. - For FQ2, SanDisk projects revenue between $2.55 billion and $2.65 billion [4]. Market Sentiment - Morgan Stanley believes that the recent market reaction to increased capital spending and supply concerns is unwarranted and does not affect the fundamental positive outlook for the memory sector [2]. - Reports of tightening supply in memory chips are interpreted as a sign of strong future earnings for companies in this sector [2]. Company Overview - SanDisk Corporation specializes in the development, manufacturing, and sale of data storage devices and solutions utilizing NAND flash technology across various global markets [5].
Morgan Stanley Lifts SanDisk (SNDK) PT, Maintains Overweight Amid Memory Stock Concerns.