Evercore ISI comments on SanDisk investor day

Evercore ISI analyst Amit Daryanani reiterated an Outperform rating and $2,800.00 price target on SanDisk (NASDAQ: SNDK) following the company's Investor Day in New York.

SanDisk Chairman and CEO David Goeckeler and CTO Alper Ilkbahar led the event, outlining the company's long-term financial targets and strategic priorities.

Through fiscal year 2030, SanDisk is targeting mid-to-high-teens revenue growth, approximately 80% gross margins, approximately 75% operating margins, and approximately 50% adjusted free cash flow margin, with capital expenditures remaining in the mid-single digits as a percentage of revenue.

The company disclosed eight negotiated business model (NBM) engagements, including three U.S. hyperscalers, with contract terms extending up to five years. The agreements represent $93.9 billion of total contract value at floor pricing and $91.1 billion of remaining performance obligations. Financial guarantees across the contracts total approximately $16.5 billion.

SanDisk's joint venture with Kioxia produced 29% of global NAND bits over the past five years while accounting for 13% of industry capital expenditure. In calendar year 2025, peers required approximately 2.66 times more capital to achieve comparable bit output.

The company also disclosed an approximately 4% stake in Nanya to secure long-term DRAM supply for its enterprise SSD portfolio under newly signed NBMs.

Regarding its HBF technology, SanDisk said samples are expected to begin shipping in calendar year 2027. The company claims HBF is designed to provide HBM-class read bandwidth with approximately 16 times the capacity.

In its most recent fiscal quarter, SanDisk generated approximately $5.0 billion in cash and returned approximately $4.5 billion to shareholders. Management stated its intention to return 100% of excess cash to shareholders, primarily through share repurchases.

Shares of SanDisk closed at $1,344.29 prior to the announcement.

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