Jefferies Raises Price Target on Western Digital (WDC) to $75; Reiterates Buy
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Jefferies reiterated a Buy rating on Western Digital Corp. (NASDAQ: WDC), and raised the price target to $75.00 (from $70.00), following the company's 1Q earnings report. Revenue totaled $4.71B, exceeding the $4.5B guided on the Sep-7 pre-announcement (Street = $4.52B). Q1 EPS hit $1.18, also above the pre-announced $1.02 (Street = $1.04). WDC expects supply tightness in NAND to persist through CY17 driven by strong end demand and the industry transition to 3D. 2Q guidance calls for revenue of ~$4.7B (Street = $4.58B) and Q2 EPS of ~$1.55 (Street = $1.27).
Analyst James Kisner commented, "WDC reported FQ1 revenue and EPS results that were better than the positive pre-announcement driven mostly by higher volumes in both HDDs and NAND but also improved pricing (particularly in NAND). Q4 guidance was also well above Street. We expect the company to continue to benefit from strong HDD and NAND fundamentals in the near to medium term. As such, we're keeping our Buy Rating."
Shares of Western Digital Corp. closed at $56.52 yesterday.
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