In a report released on April 7, Aaron Rakers from Wells Fargo maintained a Buy rating on Western Digital (WDC – Research Report), with a price target of $75.00.
Aaron Rakers has given his Buy rating due to a combination of factors that suggest a positive outlook for Western Digital. The company’s recent financial disclosures, following the spin-off of SanDisk, reveal a stronger capital structure. With a significant cash balance projected to be around $2.8-$2.9 billion after accounting for cash from SanDisk and anticipated free cash flow, Western Digital is positioned with a solid financial footing.
Additionally, the company’s net debt is estimated to be approximately $2.5-$2.6 billion, which places its enterprise value at a notable discount compared to its competitor, Seagate. This discount, coupled with a stable non-GAAP gross margin, indicates potential for value appreciation. These financial metrics, alongside the company’s strategic moves, underpin Rakers’s confidence in recommending a Buy rating for Western Digital.
Rakers covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Western Digital, and Pure Storage. According to TipRanks, Rakers has an average return of 16.5% and a 55.05% success rate on recommended stocks.
In another report released yesterday, Benchmark Co. also upgraded the stock to a Buy with a $55.00 price target.