Western Digital Receives a New Rating from a Top Analyst

By Jason Carr

Benchmark Co. analyst Mark Miller assigned a Buy rating to Western Digital (NASDAQ: WDC) today and set a price target of $130. The company’s shares closed on Friday at $80.68.

Miller commented:

“Western Digital’s current 12% free-cash- flow yield represents an extremely low valuation for a leading firm in an industry where storage demand is growing at a double digit y/y rates. Employing a conservative valuation based on investors’ current expected FY19 earnings, when chip prices are expected to stabilize, yields a target price in the $108 to $120 range. Our target price of $130 corresponds to a forward multiple of 10.4x based on our FY19 non-GAAP EPS estimate.”

According to TipRanks.com, Miller is a top 25 analyst with an average return of 31.1% and a 77.4% success rate. Miller covers the Consumer Goods sector, focusing on stocks such as GlassBridge Enterprises Inc, Hutchinson Technology Inc, and Axcelis Technologies.

Currently, the analyst consensus on Western Digital is Moderate Buy and the average price target is $112.71, representing a 39.7% upside.

In a report issued on December 12, BMO Capital also maintained a Buy rating on the stock with a $120 price target.

Western Digital’s market cap is currently $23.8B and has a P/E ratio of 16.84. The company has a book value ratio of 1.9737.

Based on the recent corporate insider activity of 93 insiders, corporate insider sentiment is negative on the stock. Last month, Matthew Massengill, a Director at WDC bought 2,164 shares for a total of $55,810.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Western Digital Corp. develops, manufactures and provides data storage devices and solutions, which enable people to create, leverage, experience and preserve data. Its product portfolio includes hard disk drives, solid-state drives marketed under the HGST, WD and G-Technology brands.