Sandisk (SNDK) is expected to post another "strong" quarter and full-year outlook, benefiting from pricing momentum for NAND memory systems, Morgan Stanley said in a note Monday.

The company is scheduled to report its fiscal Q3 financial results on April 30.

Morgan Stanley said NAND pricing momentum remains robust heading into the current quarter and is unlikely to change anytime soon due to hyperscaler demand and increasingly short supply.

While the company is expected to post very strong results, its stock is more driven by duration and may take longer to move higher after a 60% jump in the last month, the investment firm said.

In terms of capital spending, the investment firm said it expects Sandisk to increase its annual gross capital expenditure by 40% to 50% in the next 12 months.

Morgan Stanley retained an overweight rating on the stock and raised its price target to $1,100 from $690.

Shares of Sandisk were up more than 5% in Monday trading.

Price: 1044.27, Change: +54.37, Percent Change: +5.49