SanDisk stock (NASDAQ: SNDK) broke its three-day downward streak on Thursday after rising 26% in the day’s trading session. The comeback was remarkable, as SNDK tested the $1,000 floor, falling to a low of $985 this week. The crash sent shivers down the spine, as billions of dollars were riding on the back of the high-bandwidth memory (HBM) manufacturer. The entire semiconductor sector was under pressure and saw a price erosion touching double digits.
The international quantitative trading firm Susquehanna Group has reiterated its buy rating on SanDisk stock. The financial group saw the recent price drop as a risk and lowered its new price target for SNDK. The firm noted that the semiconductor sector is cyclic in nature, and the downturn is much sharper than the uptick. While their price prediction is still bullish, they remain cautious on its prospects.
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SanDisk Stock: Susquehanna Group’s Latest Price Prediction on SNDK
Mehdi Hosseini, Susquehanna’s Senior Equity Research Analyst and Technology Hardware Analyst, predicted that SanDisk stock could reach a high of $3,050. While the forecast is bullish, he downgraded it from his previous estimate of $3,250. The firm downgraded its price prediction by $200, showcasing its cautiously bullish stance on the HBM giant. The demotion indicates that Wall Street is prepared for a semiconductor slump that could tighten up when the NAND supply increases.
SanDisk stock opened Friday’s trading session at $1,279 after briefly plunging below the $1,000 level. If Susquehanna’s price prediction turns out to be accurate, that would be a surge of 138% to reach $3,050. Therefore, it could double investors’ money if they take an entry position into the semiconductor giant. An investment of $1,000 could turn into $2,380 if the price prediction reaches the target. This makes SNDK a must-watch equity, as the upward potential is immensely lucrative for traders.