Analyst Wamsi Mohan of Bank of America Securities reiterated a Buy rating on SanDisk Corp, retaining the price target of $61.00.
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Wamsi Mohan’s rating is based on a combination of factors that suggest a positive outlook for SanDisk Corp. The company is expected to benefit from a favorable shift in its product mix towards enterprise SSDs, which could offset weaknesses in the consumer segment. This shift, along with a projected tightening in NAND supply, sets a constructive stage for the latter half of the year.
Additionally, recent data indicates an upward trend in NAND pricing, driven by increased demand from AI workloads and tighter supply conditions. This is anticipated to lead to gross margin expansion in the upcoming quarters. While there are some concerns about consumer market recovery, the overall industry demand for NAND is expected to support revenue and margin growth, justifying the Buy rating with a price objective of $61.