tiprankstipranks
Wells Fargo Slashes Estimates for WDC, STX
Market News

Wells Fargo Slashes Estimates for WDC, STX

Western Digital (NASDAQ:WDC) and Seagate Technology (NASDAQ:STX) both saw estimates cut today by analyst Aaron Rakers of Wells Fargo (NYSE:WFC). Rakers is concerned about demand for their products as well as their debt covenant leverage ratios.

As a result, he expects Western Digital’s revenue to be $12.7 billion in 2023 and $15 billion in 2024. For reference, his previous estimates were $14.1 billion and $16 billion, respectively. In addition, he forecasts Seagate’s revenue to be $8.36 billion and $9.41 billion instead of $8.92 billion and $9.95 billion over the next two years.

Rakers’ earnings cuts were even more drastic, lowering Seagate’s EPS from $4.75 and $5.91 per share in 2023 and 2024, to $2.11 and $3.65 per share. For Western Digital, he sees earnings falling from $2.37 and $4.84 per share to $0.35 and $3.47 per share, respectively.

Overall, Wall Street appears to prefer WDC stock over STX stock, assigning a Moderate Buy rating for the former and a Hold rating for the latter, as indicated by the image above.

Join our Webinar to learn how TipRanks promotes Wall Street transparency

Disclosure

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles