Craig-Hallum analyst Christian Schwab raised the firm’s price target on Western Digital (WDC) to $60 from $50 and keeps a Buy rating on the shares. The firm is "encouraged" that Western Digital is joining other NAND industry participants and reducing its flash wafer start supply. Craig-Hallum also suspects that market leader, Samsung (SSNLF), will also ultimately fall in line and reduce its flash output as well. The firm believes such actions are needed to return the NAND industry to a supply/demand equilibrium and expects these industry actions to significantly improve industry profitability from current levels over time, which should also ultimately lead to significant increases in stock prices.
Published first on TheFly
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