Benchmark upgrades Western Digital to Buy on valuation, hyperscaler spending

As previously reported, Benchmark upgraded Western Digital (WDC) to Buy from Hold with a $55 price target Forward valuations of the hard drive stocks have typically ranged from mid-single-digits to low teens multiples, but Western Digital’s shares are trading at the low end of this historic range as investors’ concern over tariffs have “produced compelling valuations for some Tech hardware stocks,” notes the analyst. Besides valuation, other reasons the firm finds the shares attractive include the expected double digit year-over-year growth in data center spending by the major hyperscalers and the AI opportunity, the analyst added.