Bank of America Securities analyst Wamsi Mohan reiterated a Buy rating on Western Digital yesterday and set a price target of $100.00.
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Wamsi Mohan’s rating is based on Western Digital’s strategic positioning to capitalize on several growth opportunities. The company is expected to benefit from increased demand for higher capacity drives, particularly from the cloud segment, which constitutes a significant portion of its revenue. Additionally, Western Digital is poised to maintain strong margins through a favorable product mix, stable pricing, and ongoing cost reductions.
Moreover, the company is gaining market share in the enterprise storage space, evidenced by the substantial increase in shipments of its high-capacity drives. The positive outlook is further supported by robust guidance for the upcoming fiscal quarter, with revenue and earnings projections exceeding market expectations. These factors, combined with a favorable industry cycle and the potential for improved profitability, underpin the Buy rating and the increased price objective of $100.
In another report released today, Citi also maintained a Buy rating on the stock with a $88.00 price target.