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

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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

DateFirmActionFromTo
Jul 2015Morgan StanleyDowngradesOverweightEqual-weight
Jul 2015JP MorganMaintainsNeutral
Jul 2015Craig-HallumUpgradesHoldBuy

View More Analyst Ratings for WDC
View the Latest Analyst Ratings

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

 

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