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

Western Digital WDC and Seagate Technology 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 high definition display 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.