Stifel Reiterates Buy Rating on Western Digital Corp. (WDC) Ahead of Earnings

Stifel analyst Patrick Ho reiterated a Buy rating and $85.00 price target on Western Digital Corp. (NASDAQ: WDC) ahead of 3Q22 (Mar) earnings Thursday after the market close.

The analyst stated "Given that the company already preannounced a shortfall due to a contamination issue in its JV NAND flash fab, we are not expecting major surprises from our estimates of $4.3 billion in revenue and pro-forma EPS of $1.45, excluding options. Due to the contamination issues during the quarter, we reduced our March estimates by approximately $250 million and lowered margins as well. While we are still forecasting improved HDD and NAND flash fundamentals in CY-2H22, admittedly, we believe WD has to improve its execution in both businesses in order to capitalize on market opportunities. Some are within its control, some are not, but over the past year, execution has been shaky at best."

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 $51.01 yesterday.

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