Brean Murray Carret Raises Price Target on Western Digital (WDC) Following Earnings
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Price: $459.44 -2.05%
Rating Summary:
33 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
33 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Brean Murray Carret & Co. is reaffirming its Buy rating on shares of Western Digital Corp. (NYSE: WDC) following the release of its second quarter results. The firm is also raising its price target from $40 to $42.
The firm highlights from a earnings potential perspective, if the deal between WDC and Hitachi closes in March, the two could earn between $9.50-$10.50 per shares in CY12. Without Hitachi, the firm estimates earnings of $6-$7.
An analyst at Brean Murray Carret comments, "We remain positive on the shares although we could see a "pause after the pop" given commentary about softer ASPs in the March quarter and gross margins. Regardless, we're glb we were overweight into the call and believe the case remains for at least a $40-$41 stock."
The firm forecasts supply shortages will continue throughout 2012 and that industry production levels will not near pre-Thailand flood levels until the June quarter. Manufacturing capacity levels should return to pre-Thailand flood levels during the September quarter.
For FY12, the firm increased its EPS estimate from $3.23 to $5.52.
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 $34.71 yesterday.
The firm highlights from a earnings potential perspective, if the deal between WDC and Hitachi closes in March, the two could earn between $9.50-$10.50 per shares in CY12. Without Hitachi, the firm estimates earnings of $6-$7.
An analyst at Brean Murray Carret comments, "We remain positive on the shares although we could see a "pause after the pop" given commentary about softer ASPs in the March quarter and gross margins. Regardless, we're glb we were overweight into the call and believe the case remains for at least a $40-$41 stock."
The firm forecasts supply shortages will continue throughout 2012 and that industry production levels will not near pre-Thailand flood levels until the June quarter. Manufacturing capacity levels should return to pre-Thailand flood levels during the September quarter.
For FY12, the firm increased its EPS estimate from $3.23 to $5.52.
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 $34.71 yesterday.
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