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Investing.com - Bernstein SocGen Group has initiated coverage on Western Digital Corp. (NASDAQ:WDC) with a Market Perform rating and a price target of $96.00. The stock, currently trading at $102.39, has shown remarkable momentum with a 130% surge over the past six months, according to InvestingPro data.
The research firm cited Western Digital’s inexpensive valuation both in absolute terms and relative to competitor Seagate Technology (STX), noting the company will benefit from cyclical strength in hard disk drives (HDDs). With a P/E ratio of 22.96x and strong revenue growth of 50.7% in the last twelve months, InvestingPro analysis suggests the stock is currently trading near its Fair Value.
Bernstein SocGen cautioned that Western Digital will face both market share and margin pressure as it attempts to catch up in Heat-Assisted Magnetic Recording (HAMR) technology.
The $96 price target represents a 13x multiple on Bernstein SocGen’s calendar year 2027 earnings per share estimate of $7.39, which the firm noted is close to Western Digital’s peak multiple, excluding periods where earnings per share approached zero.
This valuation implies an enterprise value of 19.2x Bernstein SocGen’s fiscal year 2027 free cash flow estimate of $1.9 billion, which the firm stated it verified against discounted cash flow analysis.
In other recent news, Western Digital Corporation reported strong earnings for Q4 2025, surpassing analyst forecasts with earnings per share of $1.66 compared to the expected $1.47. The company’s revenue also exceeded expectations, reaching $2.61 billion against the anticipated $2.46 billion. Additionally, Western Digital provided guidance for the September quarter, projecting revenue of $2.70 billion and earnings per share of $1.54, both higher than consensus estimates. In response to these results, Mizuho raised its price target for Western Digital to $87, maintaining an Outperform rating. Similarly, Rosenblatt increased its price target to $90 from $53, citing rising demand for high-capacity drives. These developments highlight the positive momentum and investor confidence surrounding Western Digital’s performance and future prospects.
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