Wells Fargo analyst Aaron Rakers maintained a Buy rating on Western Digital (WDC – Research Report) yesterday and set a price target of $85.00.
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Aaron Rakers has given his Buy rating due to a combination of factors related to Western Digital’s strategic positioning and anticipated financial performance. The company is expected to experience significant revenue growth driven by a burgeoning total addressable market, which is projected to grow from $65 billion in 2024 to approximately $100 billion by 2030. This expansion is bolstered by increasing data storage demands and advancements in AI and autonomous driving technologies.
Additionally, Western Digital’s focus on cost management and margin expansion is another key factor supporting the Buy rating. The company is actively working on cost reduction measures aimed at maintaining a robust gross margin cycle. Furthermore, the strategic partnership with Kioxia in the flash memory venture underscores Western Digital’s operational efficiency and innovation capabilities, contributing positively to its financial outlook. These elements collectively justify the optimistic Buy rating assigned to the stock.
According to TipRanks, Rakers is a top 100 analyst with an average return of 23.5% and a 64.81% success rate. Rakers covers the Technology sector, focusing on stocks such as Western Digital, Advanced Micro Devices, and Seagate Tech.
In another report released today, Barclays also maintained a Buy rating on the stock with a $80.00 price target.