Bernstein Raises SNDK Price Target to $3000

On June 30, Bernstein analyst Mark Newman raised the company's price target for SNDK from $1700 to $3000, maintaining an 'Outperform' rating on the stock. The firm noted that the new long-term memory agreements (LTAs) differ from the old ones, as the previous LTAs were more customer-friendly, while the new LTAs feature fixed or range-bound pricing, including prepayment commitments to secure customers and mitigate downside risks, with longer terms. According to data provided by the company, it estimates that the floor price in the recently signed LAs by SanDisk is 29 cents per GB, which is significantly lower than Micron's floor price in the second quarter, the analyst stated in a research report to investors.
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