Analyst Forecasts For Sandisk Corporation (NASDAQ:SNDK) Are Surging Higher
Sandisk Corporation (NASDAQ:SNDK) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Sandisk has also found favour with investors, with the stock up an extraordinary 38% to US$268 over the past week. Could this upgrade be enough to drive the stock even higher?
After this upgrade, Sandisk's 15 analysts are now forecasting revenues of US$10.0b in 2026. This would be a huge 28% improvement in sales compared to the last 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of US$9.30 per share this year. Previously, the analysts had been modelling revenues of US$9.1b and earnings per share (EPS) of US$4.88 in 2026. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
See our latest analysis for Sandisk
It will come as no surprise to learn that the analysts have increased their price target for Sandisk 59% to US$193 on the back of these upgrades.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Sandisk's rate of growth is expected to accelerate meaningfully, with the forecast 39% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 11% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sandisk is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Sandisk could be worth investigating further.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Sandisk going out to 2028, and you can see them free on our platform here..
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.