BofA Boosts Western Digital Corporation (WDC) Target to $375 Following Strategic Outlook Update
We recently published an article titled 12 Best Data Storage Stocks to Buy Right Now.
On February 9, BofA raised its price target on Western Digital Corporation (NASDAQ:WDC) to $375 from $345 and reiterated a Buy rating following in-person meetings with CFO Kris Sennesael in New York. The firm indicated increased confidence in management’s ability to execute against revised long-term financial targets introduced at its recent innovation day, suggesting improved operational discipline and strategic clarity.
Western Digital Corporation (NASDAQ:WDC) also announced plans to divest approximately $3.17 billion of its holdings in SanDisk through a secondary public offering as part of broader debt reduction initiatives. SanDisk will not receive proceeds from the transaction, which includes a concurrent debt-for-equity exchange involving 5.8 million shares held by affiliates of J.P. Morgan and BofA Securities. The offering was priced at a 7.7% discount to the prior closing price. This transaction is expected to strengthen Western Digital’s balance sheet, enhance financial flexibility, and support capital structure optimization, thereby positioning the company to capitalize on the cyclical recovery in storage demand.
Western Digital Corporation (NASDAQ:WDC) is one of the world’s largest manufacturers of hard disk drives and data storage solutions, serving consumer, enterprise, and cloud markets. The company was founded in 1970 and is headquartered in San Jose, California.
While we acknowledge the potential of WDC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 8 Up and Coming Streaming Companies and Services and 11 Best Canadian Growth Stocks to Buy According to Hedge Funds.
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