Barclays Maintains an 'Equalweight' on Western Digital (WDC); Significantly Lowers Expectations Due to Damage at its Facilities

Barclays maintains an 'Equalweight' on Western Digital Corp. (NYSE: WDC) price target cut $10 to $27.00.

Barclays analyst says, "We think Western Digital should see a significant decline in market share due to the damage to its Thailand facilities in the near term. However, we believe its guidance reflects the worst possible scenario and WD could even see a boost to production once the Hitachi deal closes. That said, we see significant implications for the entire HDD industry (even Seagate (NYSE: STX)) given component shortages as well. We believe that the situation in drives could have implications for PC makers HP (NYSE: HPQ) / Dell (Nasdaq: DELL) in terms of higher component rices and shortages (Apple (Nasdaq: AAPL) seems to be least impacted)."

"For FY12, we lowered our EPS estimate to a loss of $0.32 (was $4.10) based on a -20% y/y in sales to $7.62B (was $9.84B). Included in this estimate is a 2Q12 EPS loss of $1.04 (was previously $1.01) based on a 50% y/y decline (54% q/q) in revenue to $1.24B (was $2.49B). We also lowered our FY13 to $3.85 (was $4.35) based on 32% y/y growth in revenue to $10.08B (was $9.92B)."

For more ratings news on Western Digital Corp. click here and for the rating history of Western Digital Corp. click here.

Shares of Western Digital Corp. closed at $24.44 yesterday.

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