Rosenblatt starts Sandisk at Buy with $2,400 target

Rosenblatt initiated coverage of Sandisk with a Buy rating and a price target of $2,400 on Tuesday, September 22, 2026. Analyst Kevin Cassidy argued that artificial intelligence is transforming NAND flash memory from a commodity into a critical component of computing infrastructure.

Cassidy noted that expanding AI model sizes and data-intensive inference now prioritize density, performance, endurance, and supply certainty over price. He pointed to Sandisk's BiCS8 and BiCS10 platforms, developed with manufacturing partner Kioxia over roughly 25 years, which improve density with fewer 3D layers than rivals to sustain a cost and performance edge in enterprise storage.

The research firm highlighted company targets for fiscal 2028 through 2030, which call for revenue growth in the mid-to-high teens, roughly 80% non-GAAP gross margin, and a 50% adjusted free cash flow margin. In addition, new agreements with eight top NAND customers could cover around 65% of fiscal 2028 production, improving demand visibility and easing sector volatility.

Cassidy estimated fiscal 2030 non-GAAP earnings of approximately $300 per share. His $2,400 price target reflects 10 times his fiscal 2028 earnings estimate, a valuation multiple he described as conservative to account for execution risks and potential cyclical pricing swings.