Western Digital stock price target raised to $87 from $75 at Mizuho

Investing.com - Mizuho (NYSE:MFG) has raised its price target on Western Digital Corp. (NASDAQ:WDC) to $87.00 from $75.00 while maintaining an Outperform rating on the stock. The company, currently valued at $26.17 billion, has seen its stock surge 58.82% year-to-date. According to InvestingPro analysis, the stock is currently trading above its Fair Value.

The price target increase follows Western Digital’s June quarter results, which came in strong at $2.61 billion in revenue. The company also provided guidance for the September quarter of $2.70 billion in revenue and $1.54 in earnings per share, exceeding consensus estimates of $2.55 billion and $1.42 respectively. InvestingPro data shows the company has maintained strong profitability with a gross profit margin of 28.56% over the last twelve months.

Western Digital reported that its Nearline hard disk drive (HDD) shipments reached 170 exabytes in the quarter, up 17% quarter-over-quarter, with cloud customers accounting for approximately 90% of revenues. Mizuho estimates that average selling prices increased 7% quarter-over-quarter and are expected to remain strong. For deeper insights into Western Digital’s performance metrics and future outlook, subscribers can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.

The company noted firm purchase orders and long-term agreements with its five largest cloud service provider customers through fiscal year 2026, with two extending through the first half of fiscal 2027. Western Digital also stated that UltraSMR technology is expected to represent more than 50% of bits shipped by the end of calendar year 2025.

Western Digital’s margins were described as strong, with artificial intelligence driving a higher mix shift toward high-capacity drives, while its HAMR technology remains on track for a first-half calendar 2027 launch.

In other recent news, Western Digital Corporation reported strong financial results for Q4 2025, surpassing analyst expectations. The company achieved an earnings per share of $1.66, exceeding the forecasted $1.47. Revenue also outpaced predictions, coming in at $2.61 billion compared to the anticipated $2.46 billion. These results highlight the company’s robust performance in the face of market challenges. In related developments, Rosenblatt has raised its price target for Western Digital to $90 from $53, maintaining a Buy rating. The firm attributes this significant increase to the growing demand for high-capacity drives. These recent developments reflect positively on Western Digital’s strategic positioning and market prospects.

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