SanDisk Corporation (NASDAQ:SNDK) shares are surging Thursday. Investors are positioning themselves ahead of the company's fiscal third-quarter earnings report. The announcement is scheduled for after the closing bell on Thursday.
Analyst Notes Strengthening NAND Market
Wedbush analyst Matt Bryson highlighted a bullish outlook for the memory sector in a Wednesday note. Bryson set a price target of $1,200 for SNDK. He noted the company is “successful in lifting pricing at a faster rate than the broader industry.”
Pricing Beats Initial Guidance
Earlier guidance suggested a 55% pricing increase for the quarter. However, analysts now forecast a 65% uplift. Bryson noted that some industry checks suggest even higher gains. This trend is expected to push gross margins to approximately 67%.
Sentiment Lifted by Sector Peers
The storage sector is seeing broad strength. Positive earnings from Seagate Technology Holdings PLC (NASDAQ:STX) recently boosted investor confidence. The company has beaten earnings per share estimates for three consecutive quarters.
Short Interest Creates Squeeze Potential
Short interest recently jumped from 8.06 million to 9.75 million shares. This represents 10.33% of the float. With high trading volume, any positive surprise on Thursday could trigger a rapid short squeeze.
SNDK Stock Price Activity: SanDisk shares were up 2.43% at $1090.02 at the time of publication on Thursday. The stock is trading near its 52-week high of $1102.99, according to Benzinga Pro data.
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