UPDATE: J.P. Morgan Reiterates Neutral Rating, Lowers PT on Western Digital Corp.
In a report published Wednesday, J.P. Morgan & Co. reiterated its Neutral rating on Western Digital Corp. (NASDAQ: WDC), but lowered its price target from $38.00 to $36.00.
J.P. Morgan noted, “We maintain our Neutral rating on WD but are lowering our estimates and Dec-13 price target. While the PC and HDD markets stand to face increasing pressures entering C2013, we believe WD has the opportunity to take market share, particularly in enterprise and notebook drives. Also, we think that WD could pursue incremental cost saving opportunities over the next 1-2 years as the Chinese MOFCOM eases up on conditions related to the HGST acquisition. These factors could make WD more attractive for investors looking to be exposed to PC and HDD market trends, in our view. In contrast, we believe Seagate could cede market share and possess less upside potential even if the PC and HDD end markets rebound, which is why we lowered Seagate's rating to Underweight from Neutral in a separate note today.”
Western Digital Corp. closed on Tuesday at $38.16.
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