Needham & Company 'Very Positive' on Western Digital (WDC) Investment News

Needham & Company analyst Richard Kugele reiterated a Strong Buy rating and $101 price target on Western Digital Corp. (NASDAQ: WDC) after the company announced that Unis will make a $3.775 billion equity investment at a price of $92.50 per share.

Kugele said he is very positive on the announcement for 3 main reasons: (1) it expands WDC's foothold in China, with a presence known to US tech companies; (2) this adds significantly to the company’s US cash balance (which was $700M of the company’s total $5.3B last quarter); and (3) we imagine that a significant investment from such a prominent Chinese entity could only help in the MOFCOM approval process.

Kugele said the investment reminds investors of WD value.

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 $69.37 yesterday.

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