Mizuho Raises Western Digital PT to $87, Maintains Outperform Rating

Mizuho Raises Western Digital PT to $87, Maintains Outperform Rating

In a significant move, Mizuho has increased its price target for Western Digital Corp. (NASDAQ: WDC) to $87.00 from $75.00, while retaining an Outperform rating on the stock. This adjustment comes on the heels of Western Digital's robust financial performance and strong market positioning.

The company, currently valued at $26.17 billion, has seen its stock surge by 58.82% year-to-date. According to InvestingPro analysis, the stock is trading above its Fair Value. Mizuho's price target increase follows Western Digital's June quarter results, which showed $2.61 billion in revenue and guidance for the September quarter of $2.70 billion in revenue and $1.54 in earnings per share, surpassing consensus estimates.

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.

The company also 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. Additionally, Western Digital stated that UltraSMR technology is expected to represent more than 50% of bits shipped by the end of calendar year 2025.

Mizuho's strong outlook is further supported by Western Digital's recent financial results for Q4 2025, which exceeded analyst expectations. The company achieved an earnings per share of $1.66, surpassing the forecasted $1.47. Revenue also outpaced predictions, coming in at $2.61 billion compared to the anticipated $2.46 billion.

In related developments, Rosenblatt has also 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. The company's strong financial performance and robust demand for its products, particularly in the cloud sector, position it favorably for continued growth.

References:
[1] https://za.investing.com/news/analyst-ratings/western-digital-stock-price-target-raised-to-87-from-75-at-mizuho-93CH-3814221
[2] https://www.investing.com/news/analyst-ratings/western-digital-stock-price-target-raised-to-87-from-75-at-mizuho-93CH-4163537
[3] https://finance.yahoo.com/news/western-digital-corporation-wdc-releases-150548489.html