Western Digital Corp (NASDAQ:WDC) Shares Price Tag Increased By $12

Western Digital Corp (NASDAQ:WDC) Shares Price Tag Increased By $12

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Western Digital Corp (NASDAQ:WDC) shares price target have been increased from $80 to $92 by S&P Capital IQ analyst Zino. The analyst retained his Buy rating on the company’s shares. The revised price objective suggested that the stock could offer nearly 15 percent upside potentials from the current levels.

Zino pointed out that Western Digital is gaining from health demand besides a favorable pricing landscape for the hard disk drivers, as well as, flash memory. One of the reasons is the tight supply and stabilization in PC shipment.

The analyst told in his research note that, “We see potential for margin expansion, on cost synergies from prior deals and prior hard disk drive capacity reductions.” He pointed out that his price tag is based on a revised near peers PE of 10.1X his fiscal year 2018 EPS estimate.

Zino lifted his EPS expectations from $6.97 to $7.98 on Western Digital. Similarly, for the fiscal year 2018 too, the analyst boosted his EPS view from $8.25to $9.09. The analyst noted that the company’s December quarter earnings beat Capital IQ consensus by 12 cents a share while sales advanced 3.7 percent on a sequential basis.

In the pre-market trading on Thursday, the stock edged up 0.29 percent.