Key TakeawaysRosenblatt launched coverage of SanDisk with a Buy recommendation and $2,400 price objectiveKevin Cassidy, the firm’s analyst, projects approximately 36% potential upside from SNDK’s $1,766.64 closeThe analyst contends artificial intelligence is transforming NAND flash from commodity storage into essential AI infrastructureThe company has secured New Business Model contracts with eight major NAND purchasers, potentially representing 65% of fiscal 2028 outputAnalyst consensus stands at Strong Buy, featuring an average target of $2,195.29On Tuesday, Rosenblatt launched coverage of SanDisk (SNDK) with a Buy recommendation, establishing a $2,400 price objective. This target suggests roughly 36% potential appreciation from SNDK’s September 22 closing level of $1,766.64.Sandisk Corporation, SNDKThe call comes from analyst Kevin Cassidy, who holds the No. 58 position among 12,521 analysts monitored by TipRanks. His track record includes a 59% accuracy rate and 39% average return per recommendation over one-year timeframes.The foundation of Cassidy’s investment thesis is clear: artificial intelligence is fundamentally altering the role of NAND flash memory. He maintains the technology is transitioning from commodity storage solutions to becoming integral components of AI computational infrastructure.Cassidy identifies growing model dimensions and data-intensive inference operations as primary catalysts. These developments, according to his analysis, are driving requirements toward enhanced storage density, superior performance characteristics, and reliable supply assurance beyond simple price considerations.Should this transformation materialize, it would represent a significant departure from NAND’s conventional market dynamics. Traditional demand has predominantly originated from consumer electronics, personal computers, and mobile devices.Technology Advancement StrategyCassidy views SanDisk as strategically positioned to capitalize on these trends. The corporation has collaborated with manufacturing ally Kioxia on NAND technology development for approximately 25 years.He draws particular attention to SanDisk’s BiCS8 and BiCS10 technology platforms. These architectures enhance storage capacity while utilizing fewer 3D layers compared to rival offerings, which Cassidy believes should preserve competitive advantages in cost efficiency and performance for enterprise AI storage applications.Company management’s financial blueprint for fiscal years 2028 through 2030 projects mid-to-high-teens revenue expansion, approximately 80% non-GAAP gross profit margins, and 50% adjusted free-cash-flow margins. Cassidy forecasts fiscal 2030 non-GAAP earnings around $300 per share.His $2,400 valuation target applies a 10x multiple to his fiscal 2028 earnings projection. He characterizes this multiple as measured, acknowledging execution uncertainties and the risk that NAND pricing could revert to traditional cyclical commodity behavior.Strategic Contracts Enhance Demand PredictabilityA component receiving particular emphasis from Cassidy involves SanDisk’s New Business Model contracts. The company has established agreements with eight of the world’s largest NAND purchasers.Cassidy projects these arrangements could encompass approximately 65% of fiscal 2028 manufacturing output. He anticipates they should provide SanDisk with enhanced demand forecasting capabilities and help mitigate the volatility that has historically characterized the NAND marketplace.This represents a substantial structural evolution, assuming these agreements remain in force. NAND has traditionally ranked among the more cyclical segments within the semiconductor industry.SNDK shares showed upward movement during Tuesday’s pre-market trading following the coverage initiation.The broader analyst community maintains a similarly positive outlook. SNDK holds a Strong Buy consensus rating on TipRanks, derived from 15 Buy recommendations and two Hold ratings.The consensus analyst price objective stands at $2,195.29, indicating approximately 24% potential appreciation from present trading levels.The post SanDisk (SNDK) Stock Earns Buy Rating from Rosenblatt with $2,400 Price Target appeared first on Blockonomi.