Western Digital shares gain on broad sector strength, upgrade

Western Digital Corp shares rose 6.7% in morning trading on Monday on a broader strength in the sector after selloffs last week, as well as an upgrade by Wall Street Zen, reversing a recent decline caused by concerns about sector-wide competition.

The upgrade comes three days before Western Digital is set to release its fiscal first-quarter 2027 results after the market close on October 22. Analysts expect earnings of approximately $4.08 per share and revenue of around $4.14 billion, in line with the company's guidance range.

Western Digital has beaten consensus earnings per share estimates in each of its last five quarters. In August, the company reported adjusted earnings per share of $3.56, above the $3.29 estimate.

Wells Fargo maintained its Overweight rating last week while reducing its price target to $450 from $730. The firm said the recent selloff in storage stocks was excessive compared to the underlying demand for data-center hard drives.

CFO Mark Long is departing the company, adding leadership uncertainty.

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