
Western Digital (WDC) Stock Forecast & Price Target
Western Digital (WDC) Analyst Ratings
Bulls say
Western Digital's positive outlook is bolstered by the anticipated growth of its cloud revenue, projected to reach 88% of total revenues by FY25, up from 75% in FY22. The nearline HDD total addressable market (TAM) is expected to experience a 14% compound annual growth rate (CAGR), fueled by advancements in AI, with significant growth anticipated as the market expands from $13 billion in CY24 to $23 billion in CY26. Additionally, the company plans to initiate a quarterly dividend of $0.20 starting in Q4 FY25, which is expected to increase in the coming years, reflecting robust free cash flow generation and a strong capital return strategy.
Bears say
Western Digital faces significant risks related to potential oversupply and pricing pressure in the hard disk drive (HDD) market, which could lead to reduced profitability and highlights the cyclical nature of the industry, with normalized earnings likely not exceeding previous levels. Additionally, while the company is focused on managing supply to align with demand to enhance profitability, buy-side expectations for gross margins remain high, leading to potential disappointment among investors. As of the end of the second quarter of fiscal year 2025, Western Digital reported a substantial net debt of approximately $5.1 billion, which may improve post-separation of certain business units, but ongoing financial challenges and market dynamics contribute to a negative outlook on its stock.
This aggregate rating is based on analysts' research of Western Digital and is not a guaranteed prediction by Public.com or investment advice.
Western Digital (WDC) Analyst Forecast & Price Prediction
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