This Analyst Is Bearish on Western Digital and Sees Downside.

Read Time:1 Minute, 21 Second
  • Benchmark Analyst Mark Miller maintained an Sell rating Western Digital Corp (NASDAQ: WDCwith a $28 price target.

  • Miller spoke with WDC management via conference call. He remains concerned about the impact of the down cycle on Western Digital’s balance sheet.

  • The overall industry remains rational in its supply.

  • Samsung Electronics Co, Ltd (OTC: SSNLFTo replace NAND supply, ) continues to invest outside of China in NAND. Apple Inc (NASDAQ: AAPL) due to U.S. restrictions on YMTC.

  • NAND pricing is still difficult, but it will be easier to price this quarter than in September.

  • Western Digital has not yet seen it but there may be pockets in the market with irrational prices.

  • Western Digital’s hyper-scale customers are going through a digestion period that could last multiple quarters.

  • Western Digital and Kioxia collaborated to determine wafer starting and spending.

  • The recent cut in HDD client pricing will not have an impact on head development. In general, the near-line pricing for HDDs has been good.

  • Western Digital has cut its FY23 planned capex expenditure by 20% to 25%

  • Repayment of $1.1 billion due in debt in 2024 is possible.

  • Price Action WDC shares fell by 0.51% to $32.05 at the last check Friday.

WDC Ratings: Latest Updates

Date

Firm

Take Action

From

To

Mar 2022

Stifel

Continue to

Buy

Jan 2022

Mizuho

Continue to

Buy

Jan 2022

Barclays

Continue to

Equal-Weight

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