Western Digital Could See Material Cash Drawdown In 2023, Analyst Says - Western Digital (NASDAQ:WDC)

Benchmark analyst Mark Miller reiterated Sell on Western Digital Corp WDC with a $28 price target.
At recent conferences, Western Digital provided updates for investors.
The firm continues to deal with inventory situations in its primary markets.
Inventory corrections have spread from the Consumer and PC segments to Data Centers.
Signs of stabilization are being seen in the consumer segment. Still, the PC inventory correction remains ongoing, and the correction in the data center segment will likely last multiple quarters. China remains quiet.
Western Digital has taken steps to reduce operating expenses and capex.
Overall, the analyst remains concerned about the impact of an extended global macro slowing on the firm’s ability to rapidly reduce inventories keeping NAND prices low, which in conjunction with an estimated $650 million tax liability, could result in a significant drawdown of cash in 2023.
Price Action: WDC shares traded lower by 3.69% at $34.70 on the last check Wednesday.
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