UPDATE: FBN Securities Raises Western Digital's PT
According to a research report published this morning, FBN Securities has increased Western Digital's (NYSE: WDC) PT from $50 to $55.
FBN Securities said in the report, "WDC is implicitly calling for GM to decline from 36% in FQ3 to roughly 30% level this quarter (we model 31%, vs. 36% for STX), after which WDC is exposed to further GM and ASP declines due to aggressive channel pricing and due to (newly-disclosed) HGST's agreements with OEMs at low prices. Still, we think that WDC should maintain GM at close to 30% for the rest of C2012. As the stock hit a 52-week high yesterday, the information disclosed last night could lead to share pressure today. Investors, however, should be buying into such weakness."
FBN Securities maintains its Outperform rating on Western Digital, which is currently trading at $38.99.
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