UPDATE: Citigroup Downgrades Western Digital to Sell on Shipments and Margin Outlook

Citigroup lowered its rating on Western Digital WDC from Buy to Sell and reduced its price target from $53 to $32. Citigroup commented, "his is driven by our lowered 4CQ TAM assumption of 140M (vs guidance of 150-155M). We anticipate that GM will be pressured by low utilization, normal price declines, and lower mix of enterprise. For CY13, we are revising down our EPS to $7.80 (from $9.32) given lower shipments of 248M (from 267M) and a more conservative GM assumption of 29.2% (from 30.1%)." Western Digital closed at $36.59 on Thursday.