tiprankstipranks
Ratings

Western Digital: Long-term Growth Potential Amid Short-term Challenges

Western Digital: Long-term Growth Potential Amid Short-term Challenges

Morgan Stanley analyst Joseph Moore maintained a Buy rating on Western Digital (WDCResearch Report) today and set a price target of $93.00.

Discover the Best Stocks and Maximize Your Portfolio:

Joseph Moore has given his Buy rating due to a combination of factors including Western Digital’s demonstrated resilience and potential for long-term growth. Sandisk’s recent Investor Day underlined the company’s strong business model, emphasizing how they have maintained gross margins higher than their peers during both downturns and recoveries. This success is attributed to their robust process technology and well-balanced market mix, which positions them well in the challenging NAND market.
Despite short-term challenges, including potential losses in the first quarter, Moore sees a positive risk-reward scenario. The company is optimistic about price stabilization and recovery later in 2025, supported by reduced capacity utilization and disciplined capital expenditure. While there are uncertainties in the near term, the prospects for tighter supply and demand dynamics in 2026 present a promising outlook for Western Digital’s performance.

Moore covers the Technology sector, focusing on stocks such as Broadcom, Nvidia, and Western Digital. According to TipRanks, Moore has an average return of 13.2% and a 56.97% success rate on recommended stocks.

In another report released today, Citi also maintained a Buy rating on the stock with a $80.00 price target.

1