Maxim Group Believes Western Digital (NASDAQ: WDC) Won’t Stop Here

By Austin Angelo

Maxim Group analyst Nehal Chokshi reiterated a Buy rating on Western Digital (NASDAQ: WDC) today and set a price target of $108. The company’s shares opened today at $88.06, close to its 52-week high of $92.50.

Chokshi noted:

“We share WDC management’s concern regarding Hynix gaining a stake in the Toshiba-Sandisk JVs given Hynix has fabs outside of the JV agreement. We believe WDC’s consent rights are valid and enforceable. We view Toshiba’s stake in the memory operations worth ~$18B, utilizing normalized earnings power. We expect WDC to participate and Hynix not to in the finalized deal, at fair valuation.”

According to TipRanks.com, Chokshi is a 4-star analyst with an average return of 15.0% and a 63.8% success rate. Chokshi covers the Consumer Goods sector, focusing on stocks such as Hewlett Packard Enterprise, Super Micro Computer, and Palo Alto Networks.

Currently, the analyst consensus on Western Digital is Strong Buy and the average price target is $119, representing a 35.1% upside.

In a report issued on June 13, Aegis Capital also initiated coverage with a Buy rating on the stock with a $130 price target.

The company has a one year high of $92.50 and a one year low of $41.64. Currently, Western Digital has an average volume of 4.32M.

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Western Digital Corp. develops, manufactures and provides data storage devices and solutions, which address the evolving needs of the information technology industry and the infrastructure that enables the proliferation of data in virtually every industry. The company product portfolio includes hard disk drives, solid-state drives marketed under the HGST, WD and G-Technology brands. It also offers mobile drives for the notebook, PC, gaming markets, serial attached small computer system interface drives, peripheral component interconnect express SSDs, home video recorders, home network storage devices, portable, desktop and personal cloud storage. The company was founded by Alvin B. Phillips in 1970 and is headquartered in Irvine, CA.