After trading flat last week, Sandisk (SNDK +2.12%) stock is starting this week off on an auspicious note. With a firm shifting its perspective on Sandisk stock, investors are finding sufficient motivation to pick up shares of the memory stock.
As of 12:22 p.m. ET, shares of Sandisk are up 3.3%, retreating from an earlier rise of 5.4%.
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The stock's pullback is only part of the reason for the new outlook
Taking a more bullish stance, Argus upgraded Sandisk stock to buy from hold this morning.
NASDAQ: SNDK
Key Data Points
According to Thefly.com, Argus based its decision on Sandisk stock dropping $500 from where it was at when the firm initiated coverage, as well as the fact that the company's is producing strong financial results.
Last week, Sandisk reported better-than-expected fourth-quarter 2026 financial results that included revenue of $8.97 billion and adjusted earnings per share (EPS) of $39.25. Analysts had anticipated sales of $8.4 billion and adjusted EPS of $34.51.
Immediately following the company posted its Q4 2026 financial results, analysts revisited their price targets -- both positively and negatively. Wells Fargo slashed its price target on Sandisk stock to $1,400 from $1,620, while Royal Bank of Canada's RBC Capital raised its price target to $1,300 from $1,000.
Is now the time to load up on Sandisk stock?
With the current crunch that data center operators are facing to secure adequate memory, it's no wonder that investors are turning increasing attention to memory stocks like Sandisk. Instead of emphasizing analysts' opinions, investors are better served to consider the company's strong fundamentals and the stock's reasonable valuation: 18.9 times forward earnings. For memory stock-focused investors interested in a more circumspect approach, however, a semiconductor ETF that includes leading memory stocks will be a better option.
