Brean Murray Carret Raises Price Target on Western Digital (WDC), Notes Seagate (STX) Has More Earnings Potential

December 2, 2011 12:10 PM EST
Get Alerts WDC Hot Sheet
Price: $73.24 +2.26%

Rating Summary:
    26 Buy, 10 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Brean Murray Carret & Co. is reiterating its Buy rating on shares of Western Digital Corp. (NYSE: WDC) following the an updated outlook from management. The firm also increased its price target from $31 to $38.

Management's outlook for the December quarter now calls for earnings of $0.60-$0.70, well above the Street's previous estimate of ($1.27). The notes stronger pricing is one reason obvious reason for the upside, but other favorable factors must also be present as guidance now calls for gross margin over 23 percent, well above the initial guidance of negative 5 percent to negative 10 percent.

An analyst at Brean Murray Carret comments, "We believe investors may now view WDC more favorably over STX given the 'incremental news cycle' is shifting more favorably towards WDC."

Brean Murray Carret continues to recommend both Seagate Technology (Nasdaq: STX) and WDC at these levels, but highlights that STX has "more earnings upside potential from these levels."

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 $29.25 yesterday.

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