TD Cowen analyst Krish Sankar maintained a Buy rating on Western Digital yesterday and set a price target of $90.00.
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Krish Sankar has given his Buy rating due to a combination of factors that highlight Western Digital’s promising outlook. The company has demonstrated strong growth in its nearline enterprise business, outpacing its competitor Seagate Technology in recent quarters. This growth is attributed to Western Digital’s Ultra SMR platform, which has gained traction among hyperscalers aggressively expanding their storage capacities.
Western Digital’s confidence in its HAMR technology roadmap is another positive indicator, with plans to introduce a 36TB HAMR drive expected to ramp up in the first half of 2027. Additionally, the company’s strategic focus on improving HAMR reliability and manufacturing yields aligns with its long-term goals. The authorization of a $2 billion share buyback program, backed by robust free cash flow generation, further underscores Western Digital’s solid financial position and commitment to enhancing shareholder value.
In another report released on July 29, Morgan Stanley also maintained a Buy rating on the stock with a $83.00 price target.