BERNSTEIN comments on $SNDK -
last line sticks out **
Sandisk's FQ4 call confirmed LTA coverage now exceeds 50% of FY27 bits and twothirds of FY28 bits, with minimum contracted value of $94B (at floor pricing) and $16.5B
of financial guarantees. This pushes actual coverage past the 60% LTA-penetration scenario
modeled in our New Memory LTA Part 1 and makes the 60-80% penetration scenarios the
most relevant for investors, on our estimates.
This implies downside is more protected than
previously thought, at over $200 EPS in FY30 even assuming >70% market price collapse.