Western Digital’s Strong Market Position and Upward Earnings Revision Drive Buy Rating
Mark Miller has issued a Buy rating for Western Digital, citing strong demand for high-capacity drives and rising prices, leading to an upward revision of target prices from $85 to $115. Projected non-GAAP earnings for fiscal year 2026 are $7.29 per diluted share on sales of $11.43 billion, with further growth expected in 2027. Bank of America Securities also maintains a Buy rating with a $123 price target.
Mark Miller has given his Buy rating due to a combination of factors influencing Western Digital’s market position. The company is experiencing a surge in demand for high-capacity drives, which has led to extended lead times of nearly a year. This strong demand is also causing drive prices to rise, prompting an upward revision of estimates and target prices, now set at $115 from a previous $85.
Additionally, Miller anticipates robust financial performance in the coming years, with non-GAAP earnings projected to increase. For fiscal year 2026, earnings are expected to reach $7.29 per diluted share on sales of $11.43 billion, up from prior estimates. Looking further ahead to fiscal year 2027, the forecast includes earnings of $7.76 per diluted share on sales of $11.8 billion, driven by sustained demand from AI and data center customers.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $123.00 price target.
