Analyst Erik Woodring of Morgan Stanley maintained a Buy rating on Western Digital (WDC – Research Report), with a price target of $46.00.
Erik Woodring has given his Buy rating due to a combination of factors that suggest a positive outlook for Western Digital. Despite the current negative sentiment towards HDDs and the high short interest in WDC, Woodring sees this as an opportune moment to invest in a cyclical hardware stock. Historically, such stocks are attractive when expectations are low and valuations have a positive asymmetry.
Woodring believes that the demand for HDDs is more sustainable than the market perceives, especially amidst recent tariff policy volatility. He acknowledges the current valuation discount of WDC compared to its peer STX but expects consistent execution to close this gap over the next year. Additionally, Woodring anticipates that de-leveraging the balance sheet and initiating a dividend will be beneficial to equity holders, supporting his $46 price target based on a 11.5x through-cycle EPS.
Woodring covers the Technology sector, focusing on stocks such as Apple, Dell Technologies, and Logitech. According to TipRanks, Woodring has an average return of 0.4% and a 54.60% success rate on recommended stocks.
In another report released on April 14, Citi also maintained a Buy rating on the stock with a $48.00 price target.