Jefferies Slashes SanDisk Price Target by 42 Percent

Investment bank Jefferies just lowered its price target on SanDisk stock by 42 percent, dropping the target from $3,000 down to $1,750. This sharp reduction comes just six weeks after the same analysts set the higher target. Other major financial firms like Susquehanna, Evercore, and Citi also trimmed their estimates recently.

This downward revision arrives despite SanDisk reporting the best quarterly earnings in its history. The company posted a massive 372 percent year over year revenue gain to reach $8.97 billion, which easily surpassed its own guidance. Data center revenue also surged 103 percent in a single quarter to hit $2.98 billion, while non GAAP earnings beat Wall Street consensus estimates by more than 12 percent.

Even with these blockbuster numbers, SanDisk stock has lost a quarter of its value over the past month. CEO David Goeckeler highlighted the strong financial health during the earnings call and announced a fresh $14 billion share buyback program. Traders will now watch to see if the stock can stabilize near these new analyst targets or if the recent market selloff will continue.