Analyst Krish Sankar of TD Cowen maintained a Buy rating on Western Digital (WDC – Research Report), retaining the price target of $80.00.
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Krish Sankar’s rating is based on the outlook for Western Digital’s Flash business, particularly in the NAND segment. The company anticipates a significant recovery in NAND average selling prices (ASPs) in the second half of calendar year 2025, driven by expected undersupply in the market as suppliers cut production. This potential undersupply, if it reaches around 5%, has historically been enough to drive ASP increases, which could benefit Western Digital’s financial performance.
Furthermore, Western Digital’s Bics8 ramp is expected to lead to increased capital expenditures, reflecting the company’s investment in future growth. The firm’s strategic position in the joint venture, where it owns nearly half of the intellectual property, provides it with leverage over capacity decisions. Although there are challenges such as higher tax rates and expected losses in the Flash business, the strategic initiatives and expected market conditions contribute to a positive outlook, justifying the Buy rating.
In another report released yesterday, Cantor Fitzgerald also initiated coverage with a Buy rating on the stock with a $95.00 price target.