Jefferies slashes SanDisk price target 42% despite record earnings
Jefferies cut its SanDisk (WDC) price target 42% to $1,750 from $3,000 despite the company reporting record quarterly results. SanDisk said revenue rose 372% YoY to $8.97B, non-GAAP gross margin was 84.6%, and non-GAAP EPS was $39.25, beating guidance and FactSet estimates. The firm also reported $4.5B buybacks and authorized $14B more.
How this was made
The 30-second read
Why it matters
Jefferies’ 42% PT cut is a fresh sell-side signal that can drive incremental positioning changes even after strong reported fundamentals.
Market read
Traders may reprice near-term expectations for SNDK as the most bearish PT move in the article arrives right after record earnings.
What to watch
The article highlights massive buybacks ($4.5B repurchased and $14B authorized) which can offset negative sentiment from PT reductions, and it notes other analysts’ targets were also trimmed, suggesting a broader estimate reset rather than a single-bank thesis.
Background
SanDisk reported record quarterly results, including revenue growth, margin expansion, and large share repurchases, yet the stock has fallen sharply over the past month.
Ticker impact
Jefferies cut its SanDisk price target 42% to $1,750 despite the company reporting record quarterly revenue, margins, and EPS.
Near-term downside bias as traders weigh the PT cut against the earnings beat, with volatility likely to persist.
The article’s actionable new fact is the magnitude and timing of Jefferies’ PT reduction, while the earnings details are framed as already-reported context rather than newly disclosed in this piece.
Market effects
Could pressure sentiment across data-center storage and AI-adjacent hardware if investors interpret the PT cut as a demand or pricing normalization risk.
No specific regional catalyst beyond US analyst actions.
Limited. The story is primarily sell-side positioning around one US-listed name.
Counterpoint
The PT cut may reflect valuation discipline rather than fundamental deterioration, and the buyback authorization plus margin expansion could support a rebound.
Key entities
- companySanDisk
US-listed data storage company whose price target was cut by Jefferies despite record earnings.
- analyst_firmJefferies
Investment bank that reduced its SanDisk price target from $3,000 to $1,750.
- executiveDavid Goeckeler
SanDisk CEO quoted on record revenue, gross margin, EPS, and buybacks.
