Bank of America says there's still more upside to come for this memory stock despite already massive rally

Bank of America reiterated its "buy" rating on SanDisk (SNDK) and significantly raised its price target to $230 from $125, projecting an 18% upside despite the stock's 440% surge since its February Nasdaq listing. Analyst Wamsi Mohan anticipates a re-rating of SanDisk's price-to-book multiple to 3x-4x, driven by robust data center demand, an undersupply of HDDs boosting enhanced SSD adoption, and SanDisk's expected market share gains in eSSDs, forecasting substantial revenue, gross margin, and EPS beats, particularly post-2H2026.

Analysis

Bank of America has reiterated its "buy" rating on Sandisk (SNDK), significantly raising its price target to $230 from $125, which implies an 18% upside from current levels. This bullish outlook comes despite Sandisk's shares having already surged 440% since their Nasdaq listing at $36 per share on February 24th, following its spin-off from Western Digital.

Analyst Wamsi Mohan projects a re-rating of Sandisk's price-to-book multiple from 0.8x-2x to 3x-4x over the next few years, driven by expectations of higher revenue growth and all-time high profitability. Key catalysts include robust demand from data centers and an anticipated medium-term undersupply of hard disk drives, which is accelerating demand for enhanced solid-state drives (eSSDs).

Mohan expresses increased confidence in Sandisk's growing penetration of the eSSD market, forecasting sustained double-digit Cloud end-market bit growth through C26 and C27. Near-term, the company is expected to deliver meaningful beats in revenue, gross margins, and EPS due to favorable NAND pricing trends. Larger magnitude improvements are anticipated after 2H2026, coinciding with the market adoption of BiCS8 based eSSDs.

Key Decisions for Investors

• Consider the significant price target increase and reiterated "buy" rating as a strong signal of continued analyst confidence despite the stock's substantial rally.
• Monitor the sustained demand from data centers and the impact of HDD undersupply on eSSD adoption, as these are critical drivers for Sandisk's projected revenue growth and profitability.
• Evaluate the company's ability to deliver on anticipated near-term revenue and EPS beats, while also tracking the longer-term catalyst of BiCS8 based eSSDs gaining market share post-2H2026.