Analyst Mark Miller of Benchmark Co. maintained a Buy rating on Western Digital, boosting the price target to $85.00.
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Mark Miller has given his Buy rating due to a combination of factors influencing Western Digital’s performance. The company showed strong results driven by robust datacenter sales, which significantly contributed to the upside in the June quarter and optimistic guidance for the September quarter. Notably, cloud sales accounted for 90% of the total sales, marking an increase from the previous quarter, and nearline drive shipments saw substantial growth both sequentially and year-over-year.
Furthermore, Western Digital’s financial health is underscored by its reported gross margins, which have improved compared to the previous quarter. The company also demonstrated strategic financial management by redeeming a significant amount of debt through the exchange of SanDisk shares. Additionally, the announcement of a quarterly dividend and a new share buyback program reflects confidence in its financial stability and commitment to returning value to shareholders. These factors collectively justify the Buy rating and the increased target price of $85.
In another report released today, Citi also maintained a Buy rating on the stock with a $88.00 price target.