Western Digital assumed with an Overweight at Morgan Stanley

Morgan Stanley assumed coverage of Western Digital (WDC) with an Overweight rating and price target of $46, down from $93. At current valuation levels, too much negativity is priced into the shares, the analyst tells investors in a research note. The firm says its recent checks give comfort that there’s more longevity to the hard-disk-drive cycle, and less solid state drives tail risk, than feared. Western Digital’s balance sheet de-levering and dividend initiation should drive a re-rating of the shares, contends Morgan Stanley.