Bank of America Securities analyst Wamsi Mohan has reiterated their bullish stance on WDC stock, giving a Buy rating yesterday.
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Wamsi Mohan has given his Buy rating due to a combination of factors that suggest a positive outlook for Western Digital. The demand for HDDs is expected to exceed supply in the foreseeable future, which positions the company well in the market. Additionally, Western Digital’s technological advancements, particularly in ePMR and HAMR, provide opportunities for significant growth in exabyte capacity. The company is also benefiting from stable or increasing pricing per terabyte, which supports revenue growth.
Moreover, Western Digital is demonstrating strong operational execution, leading to reduced costs and improved gross margins, which are currently in the mid-40s with targets exceeding 50%. The company has secured long-term agreements with multiple customers, providing visibility and confidence in sustained demand growth. These factors, combined with a higher price objective based on expected shipment growth and positive revisions, underpin the Buy rating.
Mohan covers the Technology sector, focusing on stocks such as Apple, Dell Technologies, and Seagate Tech. According to TipRanks, Mohan has an average return of 21.0% and a 63.19% success rate on recommended stocks.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $175.00 price target.