UPDATE: Auriga Raises PT to $59 on Western Digital, Maintains Buy
Auriga reiterates its Buy rating on Western Digital (NYSE: WDC) and raises its price target to $59, up $5, as the company exceeds estimates and merger catalysts appear to be underestimated.
Auriga says, "WD exceeded recently increased estimates, due entirely to higher than expected pricing and margins, while guiding forward units roughly in-line with our estimates. ...With 40% of its capacity still expected off-line near term, significant component shortages likely across the HDD industry through the June quarter, and complications surrounding the HGST merger, WD still faces many challenges in the coming quarters. However, looking a year out, we continue to like WD, as we don't believe the Street fully appreciates the long term benefits and earnings power post the HGST acquisition."
WDC closed at $34.71 a share on Monday.
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