Market Overview

RBC Sees EPS Growth For Western Digital And Seagate, Pending MOFCOM Ruling

Related WDC
Channel Checks Suggest Western Digital's Favorable Demand Trends Likely To Continue
25 Stocks Which Rallied Three Days On No News
Western Digital Q3 Earnings Could Show Rebound In Disk Drive Market (Investor's Business Daily)
Related STX
Tech Earnings Reflect Conscious Attempts At Circumventing Headwinds
Richard Pzena Shares His Thoughts On Seagate And Energy Stocks
Western Digital Q3 Earnings Could Show Rebound In Disk Drive Market (Investor's Business Daily)

Western Digital (NASDAQ: WDC) and Seagate Technology (NASDAQ: STX) are awaiting a ruling from China's Ministry of Commerce regarding allowing integration of Hitachi and Samsung assets.

Amit Daryanani, analyst at RBC Capital, expects a final decision from MOFCOM in the next two to three months.

In the case of a favorable ruling, Daryanani sees ~25 and 5 percent gross earnings per share gain for Western Digital and Seagate respectively.

Daryanani said a favorable ruling would be positive to the broad hard disk drive industry and would drive prices lower.

Daryanani reiterated an Outperform rating on both Western Digital and Seagate Technology and reiterated $92 and $60 price targets, respectively.

Shares of Western Digital are down 0.18 percent to $84.86 in Monday's trading, while shares of Seagate have gone in the other direction, up 1.56 percent to $50.93.

Latest Ratings for WDC

Oct 2016JefferiesMaintainsBuy
Oct 2016CitigroupMaintainsBuy
Oct 2016RBC CapitalMaintainsOutperform

View More Analyst Ratings for WDC
View the Latest Analyst Ratings

Posted-In: Amit Daryanani RBC CapitalAnalyst Color Analyst Ratings Tech


Related Articles (STX + WDC)

View Comments and Join the Discussion!