Skip to main content

Market Overview

Mizuho Upgrades Western Digital To Buy; Stock Up 3%

Mizuho Upgrades Western Digital To Buy; Stock Up 3%

Mizuho’s Vijay Rakesh believes the near-term estimate reset for Western Digital Corp (NASDAQ: WDC), a seasonally better 2H for NAND and a modest HDD rebound in 2H could act as tailwinds for the second half of the year.

Rakesh upgraded the rating on the company from Neutral to Buy, while raising the price target from $40 to $53.

Weakness Expected

“While WDC should give more FY17E details on its July 1 call, we have modeled weaker 2H GMs, weaker Samsung licensing, and see a mostly in-line 2H16 which would be a big change from the significant downside of the last four quarters,” the analyst mentioned.

Related Link: Citi Sees Near-Term Fundamental Weakness In Western Digital

However, Rakesh pointed out that long-term challenges remain, with 3D-NAND delays leading to share losses on iPhone, MacAir and overall NAND share losses.

Although PC builds were weak in 1H, improving PC and server builds in 2H are likely to drive some degree of rebound in HDD units.

“We believe while core WDC still faces 10K/15K HDD challenges, the NAND market should see seasonal strength with iPhone/handset builds and 2H PC and SSD ramps,” Rakesh stated.

At Time Of Writing...

Western Digital was seen up 3.14 percent at $49.53.

Latest Ratings for WDC

Mar 2021Morgan StanleyMaintainsOverweight
Feb 2021Craig-HallumMaintainsBuy
Jan 2021RBC CapitalMaintainsOutperform

View More Analyst Ratings for WDC
View the Latest Analyst Ratings


Related Articles (WDC)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas News Upgrades Price Target Analyst Ratings Movers Tech

Latest Ratings

VORStifelInitiates Coverage On58.0
VORGoldman SachsInitiates Coverage On19.0
TERNJP MorganInitiates Coverage On32.0
TERNCowen & Co.Initiates Coverage On
TERNGoldman SachsInitiates Coverage On29.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at