Bank of America: Western Digital's Share Buyback Authorization Increases
In a research report published this morning by Bank of America, Western Digital (NYSE: WDC) has increased its share repurchase authorization to $1.9+ billion.
According to Bank of America, "The increased authorization is effective immediately and extends the program by five years. We had expected to see more aggressive capital allocation policy by WD given Seagate's own capital allocation actions which have been received favorably by investors so this was not a surprise. While we view this action as favorable, we remain Neutral on concerns that HDD industry can't have it both ways for much longer – pricing/margins at high levels, and expected strong demand, with assumed channel inventory refill. Maintain Neutral."
Bank of America maintains its Neutral rating and $46 PO on Western Digital, which is currently trading at $34.39.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.