Western Digital price target raised to $65 from $55 at UBS

UBS raised the firm’s price target on Western Digital to $65 from $55 and keeps a Neutral rating on the shares. The analyst cites favorable commentary coming out of a recent investor conference for the target raise with Western Digital suggesting fiscal Q3 revenue is tracking towards the high-end of guidance and earnings expected to exceed the top-end of the guided range on the back of an improved gross margin outlook. While both the hard disk drive and NAND business continue to be burdened by underutilization, the company is seeing a stronger pricing environment in NAND as it keeps a lid on production and manages supply while the HDD business is seeing a more meaningful improvement in exabyte shipments and prices, the analyst tells investors in a research note.