Cantor Fitzgerald maintains Overweight on Western Digital stock

Wednesday, Western Digital Corp. (NASDAQ:WDC) shares maintained an Overweight rating by analysts at Cantor Fitzgerald, with a steady price target of $95.00. According to InvestingPro data, the stock currently trades at $68.92, with analyst targets ranging from $52 to $100, suggesting significant potential upside. The company’s market capitalization stands at approximately $24 billion. The firm’s analysts highlighted SanDisk’s recent financial model and guidance for the upcoming quarter, along with insights into the expected supply shortages by the fourth quarter of 2025. They underscored the potential value from the anticipated split of Western Digital’s NAND business, suggesting that the current valuation of the combined entity does not reflect the NAND segment’s worth.

In their analysis, Cantor Fitzgerald focused on SanDisk’s provision of a target financial model that spans business cycles, as well as its forecasts for the March quarter. The guidance included details on the company’s perspective regarding the rest of the calendar year 2025, with an anticipation of supply shortages emerging by the fourth quarter.

The analysts expressed a positive outlook on the planned separation of Western Digital’s NAND division, considering it a significant opportunity to unlock value. They argued that the NAND business seems to be undervalued at present when examining the valuation of Western Digital as a whole. InvestingPro analysis shows the company trading at a P/E ratio of 19.2, with impressive revenue growth of 38.6% over the last twelve months. InvestingPro Tips indicate the company is trading at a low P/E ratio relative to near-term earnings growth, with 6 additional exclusive insights available to subscribers.

Western Digital, with its headquarters in San Jose, California, operates as a developer, manufacturer, and provider of data storage devices and solutions. The company’s product portfolio includes hard disk drives, solid-state drives, and flash memory technologies, among others. Based on InvestingPro’s comprehensive analysis, Western Digital maintains strong financial health with liquid assets exceeding short-term obligations and a current ratio of 1.99. Discover detailed insights and expert analysis in the exclusive Pro Research Report, available along with 1,400+ other top stocks on InvestingPro.

The Cantor Fitzgerald analysts’ reiteration of the Overweight rating and $95.00 price target reflects their belief in the intrinsic value of Western Digital’s business components, particularly the NAND segment, which they believe is not currently factored into the company’s market valuation.

In other recent news, Sandisk, a spinoff of Western Digital, hosted its first investor day in New York City. The company presented its near-term and through-cycle financial outlook and detailed its product and technology roadmap. Sandisk expects gross margin headwinds in the March quarter but foresees substantial average selling price improvements in the second half of the year.

Cantor Fitzgerald maintained its Overweight rating on Western Digital, citing potential for a higher valuation based on several factors. The firm suggested that Western Digital’s SanDisk segment is currently undervalued and should be closer to $8 billion.

Western Digital announced board and CEO changes ahead of its upcoming flash business spin-off. Irving Tan, currently serving as Executive Vice President of Global Operations at Western Digital, will take over as Chief Executive Officer from David V. Goeckeler upon the spin-off.

Benchmark analysts maintained their Hold rating on Western Digital stock, following the company’s report of earnings for the December quarter that fell short of expectations due to soft NAND pricing. The company also set its guidance for the March quarter below investor anticipations.

Cantor Fitzgerald reaffirmed its positive stance on Western Digital, maintaining an Overweight rating and a $95.00 price target. The firm noted a mixed performance in the company’s business segments, with record levels in the Hard Disk Drive sector contrasting with softness in the NAND flash memory market.

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