Western Digital Gets a Buy Rating from Maxim Group

By Ryan Adsit

In a report released today, Nehal Chokshi from Maxim Group reiterated a Buy rating on Western Digital (NASDAQ: WDC), with a price target of $108. The company’s shares closed yesterday at $90.07, close to its 52-week high of $95.77.

Chokshi noted:

“We have been touting Tegile as a best-in-class external storage technology since 2013. Tegile compliments Amplidata building block, but success in $100B+ data center systems market will require significant incremental investments for hybrid cloud data management capabilities and sales & marketing, in our view. Despite low probability risk of losing some revenue from storage vendors, we view the acquisition of Tegile positively.”

According to TipRanks.com, Chokshi is a 4-star analyst with an average return of 14.7% and a 67.1% 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 $118.07, representing a 31.1% upside.

In a report issued on August 21, Citigroup also maintained a Buy rating on the stock with a $110 price target.

Based on Western Digital’s latest earnings report for the quarter ending June 30, the company posted quarterly revenue of $4.84 billion and quarterly net profit of $280 million. In comparison, last year the company earned revenue of $3.5 billion and had a GAAP net loss of $351 million.

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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.