Western Digital upgraded to Hold at Benchmark after Kioxia merger talks report

Benchmark analyst Mark Miller upgraded Western Digital to Hold from Sell with no price target following reports of merger talks with Kioxia. The generic bull case for Western Digital is built upon the belief that a strong cyclical recovery will follow one of the most severe downturns in years, but there are several factors the bulls need to consider that may delay or limit the extent of the rebound, Miller cautioned. The significant decline in Western Digital’s cash position could limit its ability to compete in the next up cycle against its primary NAND competitors, who have announced major new fabs, the analyst argues.