Argus based its decision on Sandisk's stock having dropped $500 from its initial coverage price, alongside the company's strong financial performance. Last week, Sandisk reported better-than-expected Q4 2026 revenue of $8.97 billion (analysts expected $8.4 billion) and adjusted EPS of $39.25 (analysts expected $34.51). The firm also noted the increasing investor attention to memory stocks amid data center operators' demand for adequate memory, emphasizing Sandisk's strong fundamentals and a forward P/E of 18.9 times.