Western Digital (WDC): We See Upside To The Positive Preannouncement - RBC
- Wall St. edges higher, supported by banks, telecoms
- Equinix (EQIX) Announces $3.6B Acquisition of Data Center Portfolio from Verzion (VZ)
- Deal Progress Said to Slow as Johnson & Johnson (JNJ) Puts Actelion (ALIOY) Under Microscope - Source
- Trump Wants to Cancel New Air Force One Order with Boeing (BA)
- Roper Industries (ROP) to acquire Deltek in $2.8B Deal
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
RBC Capital analyst, Amit Daryanani, reiterated his Outperform rating on shares of Western Digital Corp. (NASDAQ: WDC) and raised his price target to $65 from $60 and thinks WDC is seeing sustained tailwinds across both the HDD and NAND portfolio leading to 5-10% EPS upside vs. the early September preannouncement. Going forward, fundamentals should result in a better than anticipated guide for Dec-qtr but it's unclear if WDC would prefer to guide conservatively and positively update guidance at the Dec 8th analyst event.
In either guide scenario, estimates for WDC are positioned to keep moving higher through the end of CY16. The analyst "view(s) this as an attractive long through end of 2016 as WDC benefits from 1) Core HDD tailwinds from better PC + Hyperscale, 2) NAND upside from uptick in demand, limited supply and cost down benefits and 3) cost take-out benefits across HGST and SNDK and 4) tailwinds from lower interest expense and potentially tax-rate as well. Maintain OP, and adjusting our target to $65".
Shares of Western Digital Corp. closed at $58.47 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Downgrades PennTex Midstream Partners, LP (PTXP) to Hold
- UPDATE: Stifel Upgrades Martin Midstream Partners (MMLP) to Buy
- BMO Capital Raises Price Target on Gildan Activewear (GIL) Following Investor Meetings
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Related EntitiesRBC Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!