Joseph Moore, an analyst from Morgan Stanley, maintained the Buy rating on Western Digital (WDC – Research Report). The associated price target was raised to $86.00.
Joseph Moore has given his Buy rating due to a combination of factors that suggest Western Digital (WDC) is in a strong competitive position. Moore observes that Western Digital has consistently delivered results that surpass initial estimates, and he anticipates this trend to continue through the June quarter. Despite the conservative guidance from the company, especially concerning gross margin expansion, Moore sees significant potential for improvement in both the hard-disk-drive and NAND markets which Western Digital is planning to separate later in the year. He believes the underlying fundamentals of these markets are improving and that Western Digital’s financial numbers are on track to reflect this positive trend.
Furthermore, Moore’s analysis indicates that Western Digital’s pricing and product mix have fared better than their competitors, particularly in the NAND segment where Western Digital saw an 18% quarter-over-quarter price increase, despite competitors experiencing more substantial rises. He notes that this likely reflects a strategic advantage in Western Digital’s product mix. Moore also underlines that Western Digital’s conservative guidance for the June quarter suggests there is room for substantial upside, reinforcing his recommendation to buy. Overall, Moore’s optimism is rooted in the strong pricing trends and potential for continued acceleration in performance, which remains a top pick within the semiconductor sector.
In another report released today, Barclays also maintained a Buy rating on the stock with a $80.00 price target.
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Western Digital (WDC) Company Description:
Western Digital Corp. engages in the development, manufacture, market and sale of data storage devices and solutions. It operates through the following product categories: client devices, data center devices and solutions, and client solutions. The client devices category includes mobile, desktop, gaming and digital video hard drives, solid state drives (SSDs), embedded products, and wafers. The data center devices and solutions category covers capacity and performance enterprise hard disk drives (HDDs), enterprise SSDs, data center software, and system solutions. The client solutions category offers removable products, hard drive content solutions, and flash content solutions. The company was founded by Alvin B. Phillips in 1970 and is headquartered in San Jose, CA.
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- Cisco downgraded, Lucid resumed: Wall Street’s top analyst calls
- Raymond James downgrades Western Digital with recovery priced in
- Western Digital price target raised to $80 from $70 at Barclays
- Western Digital downgraded to Market Perform from Outperform at Raymond James
- Western Digital price target raised to $83 from $73 at Morgan Stanley
