Citi Raises Western Digital Price (WDC) Target to $62, Reiterates Buy Rating

On June 3, Citi analysts increased the price target for Western Digital Corporation (NASDAQ:WDC) stock to $62 from $56 while reiterating a ‘Buy’ rating. The new price target and ‘Buy’ rating affirm a favorable outlook as the company navigates the evolving data storage market.

The adjustment follows expectations that the company is well-positioned to achieve low to mid-teens revenue growth. The analysts expect the company to reach a gross margin of more than 40% through 2028.

The analyst’s solid outlook is in response to steady pricing and high utilization limit production, supporting high HDD industry margins. The company boasts robust product execution characterized by significant shipment of the 26TB CMR and 32TB ultraSMR drives.

Additionally, Western Digital boasts a gross margin of 28.56% and annual recurring revenue of $15.61 billion, signaling significant room for growth. The confirmation of a $2 billion stock repurchase program also signals confidence in the company’s cash flow generation. It also underscores Western Digital’s financial health and strategic direction.

Western Digital is a data storage company that designs and manufactures a wide variety of storage products, including hard disk drives (HDDs), solid-state drives (SSDs), and embedded storage solutions.

While we acknowledge the potential of Western Digital Corporation (NASDAQ:WDC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WDC and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None.