Needham & Company Upgrades Western Digital Corp. (WDC) to Strong Buy; Combined WD/HGST Model Suggests Stock Undervalued

Needham & Company upgraded Western Digital Corp. (NYSE: WDC) from Buy to Strong Buy with a price target of $66.00.

Analyst, Richard Kugele, said, "We believe that the acquisition of HGST by WD, despite regulatory hurdles worldwide, will prove to be a pivotal point in HDD history and drive record profitability for both WDC and STX. As we have also argued in our Seagate (NYSE: STX) thesis, with no need to price aggressively to maintain market share, we expect the group to operate rationally and within profitability metrics consistent with WD historically. Given the significant upside we project in our model to our new $66 price target, we upgrade shares."

Needham raises FY12 EPS estimate from $6.13 to $6.58 and FY13 from $8.78 to $11.00.

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 $39.45 yesterday.

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