Western Digital Poised For Breakout, Analyst Sees 10% Estimate Beat And Powerful NAND Recovery
Portfolio Pulse from Anusuya Lahiri
Evercore ISI Group analyst Amit Daryanani initiated coverage on Western Digital Corp (WDC) with an Outperform rating and a price target of $80, citing a potential 10% estimate beat and a powerful NAND recovery. Daryanani highlights the company's unique position to outperform due to cyclical HDD recovery, a significant NAND recovery, and gross margin improvements. He also notes the potential for WDC to split into two distinct assets, unlocking further value. The stock has gained over 91% in the last 12 months, and exposure to WDC can also be gained through IDAT and SEMI ETFs.
March 27, 2024 | 7:05 pm
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POSITIVE IMPACT
IShares Future Cloud 5G And Tech ETF (IDAT) offers exposure to Western Digital Corp, which is expected to see significant growth and value unlocking from its strategic split and NAND recovery.
Given that IDAT offers exposure to WDC, the positive outlook for Western Digital is likely to have a favorable impact on IDAT's performance as well, especially considering WDC's significant growth prospects.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Columbia ETF Trust I Columbia Seligman Semiconductor And Technology ETF (SEMI) provides exposure to Western Digital Corp, poised for growth from NAND recovery and strategic initiatives.
SEMI, by offering exposure to WDC, stands to benefit from the positive developments at Western Digital, including the anticipated NAND recovery and strategic split, which are expected to drive WDC's growth.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Western Digital Corp is expected to outperform with a potential 10% estimate beat and significant NAND recovery, according to Evercore ISI Group analyst Amit Daryanani. The company's split into two assets and gross margin improvements are key drivers.
The positive outlook from Evercore ISI Group, including a higher price target and the anticipation of a powerful NAND recovery, suggests a strong potential for WDC's stock price to rise in the short term. The strategic split and expected gross margin improvements further support this view.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100