Citigroup Raises Price Target for Western Digital to $78.00

Citigroup has raised Western Digital's (WDC) price target to $78.00 from $62.00, representing a 25.81% increase. The analyst maintains a 'Buy' rating on the stock, citing confidence in Western Digital's performance potential. The average one-year price target for WDC is $61.00, with a high estimate of $80.00 and a low estimate of $40.00.

Citigroup has significantly increased its price target for Western Digital (WDC), raising the stock's valuation to $78.00 from $62.00. This represents a 25.81% increase, reflecting the analyst's confidence in the company's future prospects. Asiya Merchant, the analyst at Citigroup, maintains a 'Buy' rating on the stock, indicating a positive outlook on Western Digital's performance potential [1].

The new price target comes as part of an ongoing analysis of Western Digital's market position and future growth. The average one-year price target for WDC, as reported by 21 analysts, stands at $61.00, with a high estimate of $80.00 and a low estimate of $40.00 [2]. This average target implies a potential downside of 8.29% from the current price of $66.52.

In addition to the updated price target, Western Digital has been the subject of various other analyst reports. Wall Street Zen set a "hold" rating on the stock, while Wedbush reissued an "outperform" rating with a $60.00 price target [1]. UBS Group increased their price objective to $45.00 with a "neutral" rating, and Rosenblatt Securities reduced their target to $50.00 with a "buy" rating [1]. Despite these varied opinions, the overall consensus among analysts remains moderately positive, with an average rating of "Moderate Buy" and an average target price of $64.11 [1].

Western Digital's latest earnings report showed promising results, with the company reporting $1.36 EPS for the quarter, beating the consensus estimate of $1.06 by $0.30. The company's quarterly revenue was down 33.6% year-over-year, but the net margin and return on equity remained robust at 13.33% and 20.58%, respectively [1].

Institutional investors have also shown interest in Western Digital, with several large investors increasing their holdings in the company. Jones Financial Companies Lllp grew its holdings by 73.6%, and Proficio Capital Partners LLC acquired a new stake valued at $3,541,000 during the 4th quarter [1]. PNC Financial Services Group Inc. and Zurcher Kantonalbank Zurich Cantonalbank also increased their holdings, with PNC growing its position by 2.1% and Zurcher Kantonalbank increasing its stake by 8.6% [1].

Western Digital has also announced a stock repurchase program, authorizing the company to repurchase $2.00 billion in shares. This move suggests that the company's leadership believes its shares are undervalued [1]. Additionally, the company recently cut its dividend, paying a $0.10 dividend on June 18th, which represents a $0.40 annualized dividend and a dividend yield of 0.60% [1].

Insider activity has been minimal, with CEO Irving Tan selling 11,379 shares and SVP Gene M. Zamiska selling 1,729 shares in recent transactions. However, insiders own only 0.30% of the company's stock, indicating a relatively low level of insider involvement [1].

In summary, Citigroup's updated price target for Western Digital reflects a positive outlook on the company's future performance. With strong earnings, robust financial metrics, and increased institutional interest, Western Digital appears well-positioned for growth. However, investors should remain cautious and consider the varied analyst opinions before making investment decisions.

References:
[1] https://www.marketbeat.com/instant-alerts/citigroup-raises-western-digital-nasdaqwdc-price-target-to-7800-2025-07-11/
[2] https://www.gurufocus.com/news/2972990/wdc-citigroup-raises-price-target-for-western-digital-wdc-stock-news