Western Digital Price Target Raised To $50 At FBN Securities Following 2Q Beat
Tuesday, January 24, 2022 11:17 AM



FBN Securities raised its price target on Western Digital Corp. (NYSE: WDC) to $50 from $40, following the hard drive maker's quarterly results and guidance.

Shebly Seyrafi, an analyst at FBN, said the company's expectation that it will be back to pre-flood levels by the Sept. quarter is an incremental positive for the PC companies (DELL, HPQ, etc.) as drives are expected to be much less constrained by the end of the year. He retains his "Outperform" rating on the stock.

The company posted second-quarter earnings per share of $1.51, more than twice the consensus of 71 cents. Revenue was $2.0 billion, also beating consensus of $1.8 billion. WDC shipped 28.4 million units, lower than FBN estimate of 33.4 million.

Western Digital guided third quarter earnings per share between $1.15 and $1.45, higher than consensus of 91 cents. It forecasts revenue of $2.0 billion to $2.15 billion, versus consensus of $2.05 billion. 

Seyrafi lifted his fiscal 2013 EPS estimate for the company to about $5 from roughly $3.

The Lake Forest, California-based company's product portfolio also consists of solid-state drives, home entertainment and networking products.

WDC shares, which have been trading between $22.64 and $41.87 in the past year, jumped 8 percent to trade at $37.50 in early trade on Tuesday.


 

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