The analyst is taking a long position on SNDK based on expected growth from the HBF patent and TAM expansion over the next couple of years.
The analyst believes SNDK could become a $650B+ company if HBF materializes as expected, focusing on total addressable market and EPS expansion rather than precise EPS modeling due to uncertainty in volumes and ASPs.
$SNDK could seriously be a $650B+ company especially if HBF materialises as expected. I'm just intuitively guessing given that's where their upcoming growth vector is. Modelling EPS for Sandisk/memory is a waste of time right now. It's impossible coming up with any half decent assumptions on volumes/ASPs. I'm just looking out to the next couple years and going long on the TAM (and therefore EPS) expansion.
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | -13.6% | -12.2% |
| 1 week | -9.8% | -9.4% |
| 1 month | -29.7% | -30.1% |
| 3 months | — | — |
| 6 months | — | — |