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Raymond James upgraded Sandisk on the back of a big earnings beat Thursday, in what the analyst is calling “one of the most delayed upgrades in history.” The firm moved the stock to outperform from market perform, setting a $725 price target. That indicates a more than 34% gain from Thursday’s close. Sandisk’s quarterly-earnings report delivered $6.20 in adjusted earnings per share and $3.03 billion in revenue. Both were beats of estimated $3.62 in earnings per share and $2.69 billion in revenue, according to analysts polled by FactSet. Data center growth alone was up nearly 64% quarter-over-quarter, and the company gave better-than-expected guidance of $12 to $14 earnings per share for the next quarter. SNDK YTD mountain SNDK year-to-date chart Shares soared more than 17% on Friday on the back of the results. Sandisk is the best S & P 500 stock for 2026, up 166%. “We know demand is exceptionally strong and likely only growing, supply is tightening to the point of potentially being sold out for years,” analyst Melissa Fairbanks wrote. “We see limited new supply coming online in the near term – supporting continued strong (an understatement) pricing going forward.” Fairbanks said the company’s pricing leverage thanks to high demand is a strong catalyst for growth. She added management’s view that cost reductions will rise in the current quarter is another bullish signal. But the environment for the company is changing so quickly, Fairbanks said it’s difficult to make a robust forecast. “We – and the company – lack true visibility into what ultimate demand / pricing dynamics will be beyond the current quarter (or even month),” she wrote.
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