Analyst Wamsi Mohan from Bank of America Securities reiterated a Buy rating on Western Digital and increased the price target to $145.00 from $141.00.
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Wamsi Mohan has given his Buy rating due to a combination of factors, including Western Digital’s anticipated revenue and earnings per share (EPS) that exceed market expectations. The company is experiencing significant share gains, with projections showing a notable increase in market share both quarter-over-quarter and year-over-year. This growth is supported by the ramp-up in production of high-capacity drives, which is expected to contribute positively to the company’s gross margins.
Furthermore, Mohan anticipates that Western Digital’s operating margin could approach 30% in the upcoming quarter, driven by potential shipment increases and recent price adjustments. The company’s ability to achieve record quarterly shipments of hard disk drives, along with strategic advancements in technology, positions it well for continued growth. Consequently, the price objective for Western Digital has been raised, reflecting confidence in its future performance and market position.
According to TipRanks, Mohan is a 5-star analyst with an average return of 18.4% and a 63.39% success rate. Mohan covers the Technology sector, focusing on stocks such as Apple, Western Digital, and Dell Technologies.
In another report released on October 16, Wedbush also maintained a Buy rating on the stock with a $135.00 price target.