From Seekingalpha · Benjamin C. Barry · · 50s
Sandisk Buy Target
Sandisk's earnings report could shift its stock price from DRAM volatility.
In brief
Sandisk's earnings report could shift its stock price from DRAM volatility. Sandisk is a buy with a $1,830 price target after avoiding DRAM risks through flash storage contracts. Originally reported by Seekingalpha.
Sandisk Buy Target
Sandisk is a buy with a 12-month price target of $1,830, reflecting 32% upside and minimal direct DRAM exposure.
DRAM Impact
A DRAM announcement out of China took 18% off Sandisk Corporation in a single week despite its focus on flash storage.
Contract Revenue
NBM agreements cover $59.8B in future revenue with price floors and ceilings to support earnings even if flash prices decline sharply.
Investor Action
I will add to my position if the Oct. 29 report shows a gross margin above 83% and continued pricing strength; below 83% triggers a hold.
Here's the gist
Sandisk is a buy with a $1,830 price target after avoiding DRAM risks through flash storage contracts.
