Needham & Company Reiterates Strong Buy as Western Digital (WDC) Reports 4Q Results
Needham & Company reiterated a Strong Buy rating and $67.00 price target on Western Digital Corp. (NASDAQ: WDC) following the company's 4Q earnings report. WDC reported F4Q revenue of $3.5B in-line with the preannouncement, however EPS of $0.79, beat revised guidance by $0.07.
Analyst Richard Kugele commented, "WD’s F4Q reported earnings were modestly ahead of the positive preannouncement with the upside in the quarter primarily driven by SanDisk. The company appears well on track to achieve the targeted HGST integration savings, and is beginning the SanDisk restructuring process. Street models continue to be a work in progress as the company has not yet presented a new full model (expected at the Dec 6 th analyst day). Until that time, we would not read too much into estimate revisions in either direction. Rather, we focus on the long-term earnings potential of the company, the 3D NAND technology announcement from earlier in the week showing a company competitive with the leader in the space, and the improving demand from hyperscale for high-cap. We reiterate our Strong Buy and $67 target."
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Shares of Western Digital Corp. closed at $53.70 yesterday.