Needham & Company Remains Bullish on Western Digital (WDC) Following CFO Transition and 4Q Preannouncement
Needham & Company reiterated a Strong Buy rating and $67.00 price target on Western Digital Corp. (NASDAQ: WDC) following the company's positive preannouncement and CFO transition. Executive Mark Long, in addition to his current role as Chief Strategy Officer, will oversee the finance organization as EVP, Finance and as of September 1, 2016 he will succeed Mr. Leonetti as CFO. WDC also preannounced 4Q revenue of $3.46B vs. previous revenue guidance for $3.35-3.45B, and non-GAAP EPS of $0.72 vs. original guidance for $0.65-0.70.
Analyst Richard Kugele commented, "We view WDC’s CFO transition as a clear indication of the strategic imperative the SanDisk (and HGST) transactions represent for the company. Operationally, we believe that WDC seeks to combine the strategic and finance roles more clearly. Newly designated CFO Mark Long is one of the key players within WDC who has executed on both of these transactions, making him an obvious choice for this newly-defined CFO role. Finally, with the positive pre, any concerns investors might have about such a change post-quarter should be assuaged. We reiterate our Strong Buy."
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Shares of Western Digital Corp. closed at $45.46 yesterday.