SanDisk (NASDAQ:SNDK) has won a higher price target from Bank of America, with the bank lifting its objective to $2,100 from $1,550 on the back of robust NAND demand, favourable pricing trends, and a new wave of long-term supply agreements.
At BofA's 2026 Global Technology Conference in San Francisco, investor focus centred on SanDisk's so-called new business models (NBMs), structured agreements that combine fixed pricing for an initial period with variable pricing over the remainder of the contract.
BofA said the NBMs are designed so that SanDisk's margins remain within guidance range even if pricing hits the floor, which stays unchanged during the contract term.
The bank described the structure as a win-win, saying it locks in committed supply for customers while providing committed financials for SanDisk.
The company has signed more than a third of its fiscal 2027 revenue through NBMs so far, with five agreements in place carrying financial guarantees exceeding $11 billion. The three contracts signed during the third fiscal quarter alone carry minimum contractual revenue of $42 billion. The agreements also include $400 million in prepayments and other financial instruments managed by third-party institutions.
BofA said contract durations have been staggered deliberately to avoid a scenario where multiple agreements expire simultaneously.
On the pricing outlook, the bank said average selling prices are expected to continue rising through calendar 2026, with robust conditions expected to persist into the first half of 2027. Incremental new supply is not anticipated before 2028 or 2029, a dynamic the analysts said supports upside to pricing throughout the year.
BofA raised its fiscal 2027 revenue and earnings per share estimates to $44 billion and $188, respectively, from prior forecasts of $37.7 billion and $154.
The bank said its Buy rating reflects SanDisk's valuation, its joint venture partnership structure, market share gains, and long-term potential for industry consolidation.