Jefferies slashes SanDisk price target 42% despite record earnings

This morning, Jefferies slashed its price target on SanDisk stock 42% from $3,000 to $1,750. ZeroHedge laughed out loud at the drastic action.

Just six weeks ago, on June 26, analysts at the investment bank had set their $3,000 price target. Nonetheless, SanDisk stock price is down, even after the AI chipmaker reported the best quarterly earnings in its history yesterday.

Its most recent quarterly revenue was a 372% year-over-year gain to $8.97 billion, far surpassing its own guidance range of $7.75-8.25 billion.

Non-GAAP gross margin landed at 84.6%, dwarfing the prior year’s 26.4% and beating its guidance range of 79-81%. Non-GAAP earnings of $39.25 per share beat a FactSet consensus of analysts’ estimates by more than 12%.

Numbers from the blockbuster quarter were invariably positive. Data center revenue, the business SanDisk spent a year building, grew 103% in a single quarter to $2.98 billion.

Chairman and CEO David Goeckeler told analysts the company “delivered record revenue, gross margin, and earnings per share, each above the high end of our guidance, and repurchased $4.5 billion of company stock.”

Then, the board authorized another $14 billion of share buybacks.

SanDisk has lost a quarter of its value in a month

Despite these celebratory figures, SanDisk’s stock has crashed by 25% over the past month.

Analysts cut estimates. Susquehanna reduced 6%; Evercore trimmed to $2,800 from $3,100; Citi dropped from $2,500 to $2,100; Jefferies cut 42%, the deepest of them all.

Today’s reduction to $1,750 is Jefferies’ first interruption of an up-only trend.

Its analyst, Blayne Curtis, has raised Jefferies’ price target on SanDisk seven times since July 2025 from $60 to $3,000. His rating was “buy” at every rung.

Morgan Stanley analyst Joseph Moore reached his $1,750 price target on June 3 and left it alone through Sandisk’s record earnings report and the stock’s slide.

Jefferies has now spent nine weeks traveling to the same number via $3,000.