Western Digital, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Erik Woodring from Morgan Stanley maintained a Buy rating on the stock and has a $99.00 price target.
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Erik Woodring has given his Buy rating due to a combination of factors that highlight Western Digital’s strong position in the HDD market. The analyst has noted that the demand for HDDs continues to outpace supply, driven by factors such as vendor and end-market consolidation, transparent purchasing habits from hyperscale customers, and rational behavior within the oligopolistic market. Furthermore, industry checks indicate ongoing demand strength, with new AI-native companies entering the market and increased data generation from AI applications, making HDDs a compelling investment opportunity.
Woodring’s confidence in Western Digital is further bolstered by recent meetings with the company’s management, which have provided reassurance about the company’s technology roadmap. Despite Seagate’s lead in HAMR technology, Western Digital is not far behind, with major cloud vendors supporting its efforts to ramp up production. Additionally, Western Digital’s ePMR and UltraSMR technologies are proving to be highly effective, and the company’s valuation discount compared to peers is seen as unjustified. These factors collectively contribute to Woodring’s decision to elevate Western Digital to a Top Pick status.
In another report released on August 19, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $85.00 price target.
Based on the recent corporate insider activity of 100 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.