Harlan Sur, an analyst from J.P. Morgan, has initiated a new Hold rating on SanDisk Corp (SNDK).
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Harlan Sur has given his Hold rating due to a combination of factors impacting SanDisk Corp’s market position and future prospects. While the company benefits from the AI-driven enterprise solid state disk (eSSD) supercycle, its exposure to this market is relatively smaller compared to its peers. This limits its potential to capitalize fully on the growing demand, despite having a structurally advantageous cost base through its joint venture with Kioxia.
Moreover, the current pricing power is seen as a peak in the cycle rather than a permanent shift, with upcoming capacity expansions from 2027 likely to disrupt the current balance of supply and demand. Although SanDisk is well-positioned to benefit from the current market conditions with high margins and free cash flow, the anticipated normalization of earnings and the cyclical nature of the industry suggest that the stock’s risk-reward profile is balanced. Therefore, the Hold rating reflects the potential for near-term gains being offset by medium-term risks as the market reverts to its historical patterns.
According to TipRanks, Sur is a top 100 analyst with an average return of 28.0% and a 69.18% success rate. Sur covers the Technology sector, focusing on stocks such as Marvell, Nvidia, and Advanced Micro Devices.
In another report released on November 25, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $233.00 price target.