Western Digital price target lowered to $38 from $40 at Mizuho

Mizuho analyst Vijay Rakesh lowered the firm’s price target on Western Digital to $38 from $40 and keeps a Neutral rating on the shares as part of a broader research note on Memory industry. Valuations for the group have remained attractive, but trends in the near term are weaker due to China COVID restrictions, higher memory supplier inventories and fab underutilization impacting margins, the analyst tells investors in a research note. Rakesh adds that pricing is trending negative, and fab underutilization provides an added headwind to margins.