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Argus Research analysts led by Jim Kelleher view the recent pullback in SanDisk (SNDK) shares as a major buying opportunity for long-term investors. On Monday, Kelleher upgraded SNDK to “Buy” and maintained his $1,600 price target, indicating potential upside of more than 25% from current levels.
Sandisk stock is still trading at nearly 4.5x its price at the start of 2026 but is down more than 45% versus its year-to-date high in late June.
Why Did Argus Research Upgrade Sandisk Stock?
In his research note, Kelleher said the recent sell-off in SNDK shares despite the company’s robust Q4 earnings, featuring a 51% sequential increase in revenue, is rather overdone.
At less than 7x earnings, he believes the Nasdaq-listed firm is trading at a massive discount for an artificial intelligence (AI) beneficiary.
“Our upgrade reflects accelerating demand momentum that is keeping valuations reasonable,” the analyst told clients.
Note that Sandisk looks headed to challenge its 20-day and 100-day moving averages (MAs) in the days ahead, with a clear break above the $1,370 level expected to boost upward momentum in the near term.
What Else Makes SNDK Shares Worth Buying Today
Argus Research recommends buying SanDisk shares at current levels as the company is entering a multi-year period of top-line growth and margin expansion.
In fiscal Q4, its gross margin stood in the mid-80% range, making SNDK the most profitable of all tech hardware firms in Kelleher’s coverage universe.
“SanDisk is strongly positioned within the nonvolatile memory (NVM) market, with leadership in NAND flash solutions,” Kelleher added.
All in all, the relentless AI data center demand equips SNDK with significant pricing power, which will help drive its stock price higher from current levels over the next 12 months, he concluded.
What’s the Consensus Rating on SanDisk?
Interestingly, Argus Research is still one of the more conservative Wall Street firms on Sandisk.
According to Barchart, the consensus rating on SNDK stock sits at “Strong Buy” currently, with the mean price objective of a much higher $,2245 signaling potential for a whopping 80% rally in the back half of 2026.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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