SanDisk initiated with an Equal Weight at Wells Fargo

Wells Fargo initiated coverage of SanDisk (SNDK) with an Equal Weight rating and $56 price target The firm notes the company did not provide formal guidance beyond Q3, but did outline an expectation of a strong second half of 2025 recovery underpinned by the NAND industry’s actions to reduce bit supply. Wells does expect a second half of the year recovery, but is not modeling same degree of recovery that Sandisk outlined – most notably, it models a more tempered blended ASP expansion vs. expectation of high-single-digits to low double digits quarter-over-quarter expansion. The firm is also increasing its thru-cycle earnings power expectation to $4-$5/share.