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Auriga Maintains a 'Buy' on Western Digital (WDC); Worst Disaster in History? No Problem. Raising Estimates & PT

January 24, 2012 10:36 AM EST
WDC Hot Sheet
Rating Summary:
    10 Buy, 8 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 2
Auriga maintains a 'Buy' on Western Digital Corp. (NYSE: WDC) price target raised from $54 to $59.

Auriga analyst said, "WD exceeded recently increased estimates, due entirely to higher than expected pricing and margins, while guiding forward units roughly in-line with our estimates. This prompts us to re-raise our above recent consensus estimates, and further raise our price target. With 40% of its capacity still expected off-line near term, significant component shortages likely across the HDD industry through the June quarter, and complications surrounding the HGST merger, WD still faces many challenges in the coming quarters. However, looking a year out, we continue to like WD, as we don't believe the Street fully appreciates the long term benefits and earnings power post the HGST acquisitiom."

For an analyst ratings summary and ratings history on Western Digital Corp. click here. For more ratings news on Western Digital Corp. click here.

Shares of Western Digital Corp. closed at $34.71 yesterday, with a 52 week range of $22.64-$41.87.


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