Western Digital Gets a Buy Rating from Benchmark Co.

By Jason Carr

In a report released today, Mark Miller from Benchmark Co. reiterated a Buy rating on Western Digital (NASDAQ: WDC), with a price target of $135. The company’s shares closed yesterday at $88.03, close to its 52-week high of $91.

Miller commented:

“Western Digital continues to report progress on the ramp of its 64 layer BiCS NAND Chip which along with constrained supply bode well for WDC. Company Update Rating: Buy Current Price $88.03 Price Target $135.00 52-Wk Range $40.98 – $91.00 Market Cap (B) $25.6 Enterprise Value (B) $31.8 Shares Outstanding 291,240,000 Avg. Volume (30 day) 4,190,253 Float 290,500,000 Dividend Yield % 2.27 Annual Dividend $2.00 Sector Weight Market Weight Mark Miller 925-648-2692 mmiller@benchmarkcompany.com FY Jun Q1 Q2 Q3 Q4 Total P/E EPS 2016A $1.56A $1.60A $1.21A $0.79A $5.16A 17.1 2017E $1.18A $2.30A $2.39A $2.62E $8.49E 10.4 2018E $3.31E $3.51E $3.24E $2.95E $13.01E 6.8 Revenue (m) 2016A $3,360A $3,317A $2,822A $3,495A $12,994A 2017E $4,714A $4,888A $4,649A $4,800E $19,051E 2018E $5,100E $5,250E $5,050E $4,850E $20,250E Western Digital Corp. (WDC) May 24, 2017 Page 2 Checks Indicate Normal Channel HDD Inventories and Continued Strong Demand for NAND Flash The June quarter has historically been the slowest quarter of the year for hard drive sales when inventories rise and pricing can slip.”

According to TipRanks.com, Miller is a top 25 analyst with an average return of 33.9% and a 82.9% success rate. Miller covers the Technology sector, focusing on stocks such as Hutchinson Technology Inc, Rofin-Sinar Technologies, and Axcelis Technologies.

Currently, the analyst consensus on Western Digital is Strong Buy and the average price target is $118.31, representing a 34.4% upside.

In a report issued on May 11, RBC Capital also maintained a Buy rating on the stock with a $115 price target.

The company has a one year high of $91 and a one year low of $41.64. Currently, Western Digital has an average volume of 4.17M.

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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.