Western Digital’s Q2 Outlook: A Mixed Bag
BofA Boosts Price Target Amidst Challenging Flash Business Environment
Bank of America has raised its price target on Western Digital (WDC) to $84, up from $80, while maintaining a Buy rating on the shares. This move comes after the company pre-announced its fiscal Q2 revenue expectations, which are likely to fall within the mid-point of the guided range. However, earnings per share (EPS) are expected to come in at the lower end of the guided range of $1.75-$2.05.
Pricing Pressure in Flash Business Cited as Key Factor
The company attributes this mixed performance to a more challenging pricing environment in its flash business. This development may have been influenced by the recent news surrounding the transition of its Chief Financial Officer (CFO), Wissam Jabre.
Cyclical Recovery and Business Split Expected to Drive Growth
Despite these challenges, BofA remains optimistic about Western Digital’s prospects, citing the ongoing cyclical recovery and the upcoming split of its hard disk drive (HDD) and NAND businesses. This confidence is reflected in the firm’s reiterated Buy rating.
Analysts Weigh In on Western Digital’s Future
Western Digital’s stock has been the subject of recent analyst attention, with Barclays lowering its price target to $80 from $90. Meanwhile, BofA’s revised target of $84 suggests a more positive outlook.
Stay Ahead of the Curve with Top-Rated Stocks
Discover outperforming stocks and make informed investment decisions with Tipranks’ Stock Screener. This powerful tool allows you to filter, analyze, and streamline your search for investment opportunities. Try it now and access top stocks recommended by analysts.
Leave a Reply