Melius Research initiated coverage of Western Digital with a Buy rating. The firm set a street-high price target of $1,050. Analysts believe the market undervalues long-term demand for high-capacity hard disk drives (HDDs) used in artificial intelligence infrastructure.
Goldman Sachs raised its price target on the company to $650 from $400. This revision follows tight HDD supply and strong cloud demand. Cantor Fitzgerald and Bank of America also increased their price targets, citing a sustained AI-driven cycle for data storage.
Western Digital will report its fourth-quarter earnings on July 29.