Evercore ISI raised its price target for Western Digital Corp. (WDC) to $230, up from $190. The firm maintained its "Outperform" rating on the stock. This update occurs while WDC shares trade near their 52-week high.
The firm attributes its positive outlook to two factors. Western Digital benefits from strong end-market demand. It also operates in a more favorable pricing environment than seen historically.
Evercore ISI also cited the upcoming monetization of Western Digital's remaining SanDisk stake as a potential tailwind. The firm anticipates the company will use the proceeds to reduce debt. Furthermore, WDC plans to return capital to shareholders through dividends and share repurchases.
This strategy enhances the company's capital allocation flexibility. Other analysts, including Benchmark and BofA Securities, have also recently increased their price targets for WDC.