TD Cowen analyst Krish Sankar maintained a Buy rating on Western Digital yesterday and set a price target of $200.00.
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Krish Sankar has given his Buy rating due to a combination of factors that highlight Western Digital’s strong position in the HDD industry. One of the key reasons is the company’s strategic decision not to expand capacity, which aligns with the potential for significant growth in areal density, suggesting a promising outlook for the industry. This strategic positioning, coupled with the visibility extending into 2027 within a rational duopoly market, supports the optimistic view on Western Digital’s stock.
Additionally, Western Digital’s progress with HAMR technology is noteworthy. The company is expected to ship a HAMR drive to a CSP customer earlier than anticipated, reducing the expected gap with its competitor, STX, to two years instead of three. This development, along with the potential for improved gross margins driven by new product pricing, positions Western Digital favorably. The company has consistently maintained a higher gross margin compared to STX, further reinforcing the Buy recommendation.
In another report released yesterday, Robert W. Baird also maintained a Buy rating on the stock with a $180.00 price target.
Based on the recent corporate insider activity of 95 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WDC in relation to earlier this year.