Western Digital price target raised to $306 from $260 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Western Digital (WDC) to $306 from $260 and keeps an Overweight rating on the shares. Western echoed very similar demand strength and visibility commentary as Seagate (STX) earlier this week, but the market continues to underappreciate sustainable pricing tailwinds and the subsequent flow-through to margins and EPS, says the analyst, who raised the firm’s FY27 EPS estimate by 20% to $17.