Western Digital (WDC) PT Raised to $60 at RBC Capital Following Raised Outlook
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
RBC Capital analyst Amit Daryanani reiterated an Outperform rating and boosted his price target on Western Digital Corp. (NASDAQ: WDC) to $60.00 (from $56.00) after the company pre-announced better than expected Q1 results.
Daryanani commented, "WDC positively pre-announced Sept-qtr results with upside to both revenues and EPS vs. its initial guide. WDC expects Sept-qtr results to be ~$4.45-4.55B/$1.00-1.05 (~15c EPS upside vs. its guide). Much of the upside appears to be gross margin driven (~100bps upside) coupled with benefits from lower interest expense that is partially offset by higher-than-planned OPEX. We are raising our forward estimates higher to reflect the Sept-qtr upside and lower interest expense from the recent debt refi that company did. Fundamentally, we think WDC should see revenue/EPS ahead of expectations in H2:16 and possibly in H1:17 given the confluence of strong HDD fundamentals coupled with a supply-constrained NAND environment, in our opinion. We further see EPS upside getting amplified from sustained deleverage and lower tax rate as well. Maintain OP and adjusting our target to $60."
Shares of Western Digital Corp. closed at $47.55 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Checkpoint Software (CHKP) PT Raised to $94 at Stifel Following 4Q Beat
- Union Pacific (UNP) PT Raised to $120 at Aegis Capital Following Solid 4Q
- Carter's (CRI) PT Lowered to $105 at Oppenheimer; Reiterates Outperform
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!