Western Digital (WDC): Lower Credit Cost Boosts Estimates

September 23, 2016 6:52 AM EDT
Get Alerts WDC Hot Sheet
Price: $72.63 +1.34%

Rating Summary:
    26 Buy, 10 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Mizuho Securities analyst, Vijay Rakesh, reiterated his Buy rating on shares of Western Digital Corp. (NASDAQ: WDC) after the company announced that it has repriced its €885M Term B Loan, dropping the cost to Euribor + 3.25%, ~200 bps lower than previous pricing (Euribor+525bps).

The combination of the August repricing of the company's $3.0B loan is expected to save over $150M in annual interest payments. The analyst believes that the improving near-term fundamentals opens the door to upside accretive re-financing of another ~$7B of debt at lower rates.

No change to the price target of $60.

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 $56.07 yesterday.

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