BMO Capital Starts Western Digital Corp. (WDC) at Market Perform

BMO Capital initiates coverage on Western Digital Corp. (NASDAQ: WDC) with a Market Perform rating and a price target of $60.00.

Analyst Tim Long commented, "We are initiating coverage of Western Digital (WDC) with a Market Perform rating and a price target of $60. The industry backdrop for HDDs remains challenged as some end markets are in secular decline, and flash continues to take share. We do not expect a meaningful recovery in most of the end markets, with PCs probably being the biggest drag. Western Digital is trying to diversify by acquiring SanDisk (SNDK), but we are concerned about the higher consumer exposure, position in 3D NAND flash, impact to the balance sheet and capital return, and higher level of capital spending required. Once the Unisplendour deal closes, there will likely be meaningful dilution to EPS estimates."

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 $62.95 yesterday.

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