Robert W. Baird analyst Tristan Gerra has maintained their bullish stance on WDC stock, giving a Buy rating yesterday.
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Tristan Gerra has given his Buy rating due to a combination of factors including Western Digital’s strategic focus on high-capacity HDDs, which is expected to drive growth amidst a tight supply environment. The company’s emphasis on upgrading customers to higher-capacity drives is anticipated to enhance gross margins, as demand remains robust and supply constraints persist.
Additionally, the increasing demand from AI applications, particularly from large language models and agentic AI agents, is seen as a significant growth driver for storage needs. Western Digital’s positioning in the data center market, coupled with a favorable cost advantage over NAND, supports a positive outlook. The company’s recent financial performance, with strong revenue growth and improved gross margins, further reinforces the Buy rating.
According to TipRanks, Gerra is a 5-star analyst with an average return of 9.2% and a 53.00% success rate. Gerra covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Seagate Tech, and Knowles.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $90.00 price target.