Western Digital stock price target raised to $75 from $61 at Mizuho

Investing.com - Mizuho (NYSE:MFG) has raised its price target on Western Digital Corp. (NASDAQ:WDC) to $75.00 from $61.00 while maintaining an Outperform rating on the stock. The company, currently trading at $64.64 with a market capitalization of $22.55 billion, has demonstrated strong momentum with a 43.73% return year-to-date. According to InvestingPro data, Western Digital maintains a "GOOD" overall financial health score.

The price target increase represents a higher valuation multiple of 13.1x Mizuho’s fiscal 2026 earnings estimate, up from the previous 11.4x multiple, and compares to Western Digital’s five-year P/E range of 2.6x to 11.7x. The stock currently trades at a P/E ratio of 20.86, with InvestingPro analysis revealing 11 additional key insights about the company’s valuation and growth prospects.

Mizuho maintained its June quarter revenue and earnings per share estimates of $2.45 billion and $1.45, respectively, which align closely with consensus estimates of $2.45 billion and $1.46.

The firm raised its fiscal 2026 estimates from $9.70 billion in revenue and $5.35 in EPS to $10.3 billion and $5.72, respectively, while also increasing its fiscal 2027 projections from $10.0 billion and $5.68 to $11.0 billion and $5.96.

Mizuho cited Western Digital’s strong UltraSMR ramp-up expected in the second half of 2025, with volume shipments of 36TB drives anticipated to drive better gross margins, while noting that HAMR technology remains on track for launch in the first half of calendar 2027.

In other recent news, Western Digital Corp. announced a new $2 billion share repurchase program, signaling confidence in its long-term business prospects. The buyback plan, approved by the Board of Directors, is effective immediately and may be executed through open market or privately negotiated transactions. This move aligns with Western Digital’s broader capital allocation strategy, which includes reinvesting in the business, reducing debt, and returning capital to shareholders. Citi analysts have raised their price target for Western Digital stock to $62 from $56, maintaining a Buy rating, reflecting optimism about the company’s revenue growth and gross margin prospects through 2028. JPMorgan has also reiterated an Overweight rating with a $57 price target, highlighting Western Digital’s strong position in cloud and hyperscale spending. BofA Securities maintained a Buy rating and a $62 price target, emphasizing the company’s commitment to shareholder returns through buybacks, which could enhance earnings per share. Western Digital’s recent financial strategies and product developments, including the launch of new high-capacity drives, are expected to support its market position. These developments underscore the company’s proactive approach to capital management and its confidence in future growth.

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