This Western Digital Analyst Expects 2Q Earnings At High End Of Guidance: 'Risk-Reward Is Attractive'
Portfolio Pulse from Priya Nigam
Western Digital Corp (NASDAQ:WDC) shares rose after Deutsche Bank analyst Sidney Ho upgraded the stock from Hold to Buy and increased the price target from $45 to $65. Ho expects Western Digital to report fiscal Q2 earnings at the high end of guidance due to a faster-than-expected improvement in NAND pricing. The company's planned spin-off of its Flash business does not require regulatory approval and is on track for the second half of 2024. Ho also raised earnings estimates for Q2 and Q3, reflecting better NAND pricing and the impact of a recent convertible debt issue used to pay down other debts. The stock was trading at $52.10, up 4.19%.
January 16, 2024 | 4:40 pm
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POSITIVE IMPACT
Western Digital's stock received a positive analyst upgrade from Deutsche Bank with a new price target of $65, and expectations of Q2 earnings at the high end of guidance. The company's Flash business spin-off is proceeding as planned, and recent debt management is seen as positive.
The upgrade by Deutsche Bank, along with the raised price target and improved earnings estimates, is a strong positive signal for investors. The stock's rise following the announcement indicates market agreement with the analyst's outlook. The successful debt management and the on-track spin-off of the Flash business add to the positive sentiment. These factors are likely to contribute to continued short-term bullishness for WDC.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100