11:45 AM EST, 11/03/2025 (MT Newswires) -- Sandisk's ( SNDK ) short-term risk-reward has become more balanced as the stock has climbed, Morgan Stanley said in a Monday research note.

The brokerage removed its Top Pick designation on the stock but said it remains "fundamentally bullish" on Sandisk ( SNDK ), citing indications that industry-wide pricing is up 10% to 15% or more in both the fourth and first quarters and that multiple quarters of upward pricing revisions remain possible.

The supply-demand imbalance in the storage market is "severe," including in hard disk drives, Morgan Stanley said. Several years of low capital spending in NAND flash memory have left limited clean-room capacity for expansion, while most suppliers continue to focus on DRAM investments that divert cash away from NAND.

Morgan Stanley maintained its overweight rating on Sandisk ( SNDK ) and raised its price target to $230 from $96.

Shares of Sandisk ( SNDK ) were down 1.4% in recent trading.

Price: 196.62, Change: -2.71, Percent Change: -1.36