Summary
- Western Digital gets a neutral view for my initial rating, even though I was bullish on its peer Seagate last fall.
- The key strength is betting on continued AI and cloud-driven demand for new data storage solutions due to specific lifecycles and this firm’s competitive position in that niche.
- Profit margins and a modest D/E ratio are both impressive, but some price targets suggest downside potential.
- The below investment-grade…
Summary
- Western Digital gets a neutral view for my initial rating, even though I was bullish on its peer Seagate last fall.
- The key strength is betting on continued AI and cloud-driven demand for new data storage solutions due to specific lifecycles and this firm’s competitive position in that niche.
- Profit margins and a modest D/E ratio are both impressive, but some price targets suggest downside potential.
- The below investment-grade rating of BB+ from Fitch also adds slightly to the risk profile.
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Today’s Pick: A Disk Drive Maker Getting Attention From Wall Street
The tech sector is back on my radar again, so today’s coverage focuses on Western Digital (WDC), whose next earnings results
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