Western Digital Corp. (WDC) PT Raised to $730 at Wells Fargo
Wells Fargo analyst Aaron Rakers raised the price target on Western Digital Corp. (NASDAQ: WDC) to $730.00 (from $575.00) while maintaining a Overweight rating.
The analyst comments "Increase Estimates (See Tables Below) WDC: We increase CY26 & CY27 rev / GM% / EPS ests to $15.5B / 53.6% / $14.60 and $20.9B / 60.4% / $24.50, respectively; initiate CY28 est at $27.4B / 65.1% / $36.50. Our CY27 & CY28 ests are now ~6.5% / ~16% above Street ests. STX: We increase CY26 & CY27 rev / GM% / EPS ests to $14.3B / 51.5% / $21.60 and $19.1B / 57.5% / $35.20, respectively; initiate CY28 ests at $25.0B / 62.3% / $53.69. Our CY27 & CY28 ests are now -8% / -7% vs. Street ests. Consistent (Positive) Commentary on Extending Demand Visibility (CY30+). Expect both WDC & STX to highlight extending demand visibility w/ potential EB demand growth accelerating into CY27-CY28; reaffirmed confidence in purchase agreements (volume- driven; pricing set at build commencement [6-9 months pre-delivery] and dependent on mix) with all major CSPs. Customer engagements now extending into CY30+ w/ nearline HDD production capacity allocation through CY27 and extending visibility into CY28."