Why Sandisk Stock Keeps Going Up

Sandisk (NASDAQ: SNDK) banal soared connected Friday, gaining much than 8% aft beating Wall Street net goals with a instrumentality -- and the hits support coming.

Shares of the fashionable machine memory-maker are up different 5.3% done 9:50 a.m. ET Monday greeting -- Sandisk's 4th consecutive time of gains -- and investors tin convey Wall Street for today's run.

Why Wall Street loves Sandisk

In back-to-back reports, archetypal Montclair, NJ-based banal probe steadfast Fox Advisors raised its terms people connected Sandisk to $1,500 a share. No sooner had it done so, reports TheFly.com, than analysts astatine Bernstein predicted Sandisk volition spell to $1,700!

As Bernstein explains successful its note, Sandisk reported "strong" net for past 4th -- $23.03 per stock successful GAAP nett connected income that astir doubled twelvemonth implicit twelvemonth to $6 billion. Pricing for Sandisk's NAND flash representation products is "very strong," helping the institution to rise its guidance and convincing Bernstein to rise its ain estimates of what Sandisk volition gain this year.

What's adjacent for Sandisk stock?

Semiconductor income person historically been cyclical. High prices (like today) pull contention and person producers (Sandisk included) to summation capableness and production, increasing proviso and driving prices little successful the aboriginal -- astatine which constituent the up rhythm ends and the down rhythm begins.

Bernstein isn't predicting this clip volition beryllium different, but alternatively arguing that the existent up-cycle is truthful beardown that prices volition boost Sandisk profits enormously successful the short-term, capable truthful that it's assured successful predicting Sandisk shares volition emergence different 39% oregon much implicit the adjacent 12 months.

Even aft the gains Sandisk enjoyed past week, the banal inactive trades for astir 40 times trailing earnings. 35% maturation could beryllium accelerated capable to enactment that valuation -- similar Bernstein says, astatine slightest successful the abbreviated term.

Should you bargain banal successful Sandisk close now?

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