Zacks Investment Research downgraded shares of Western Digital Corporation (WDC) from OUTPERFORM to NEUTRAL on February 28, 2014, with a target price of $93.00.
We downgrade Western Digital to Neutral as the company expects revenues to be down sequentially due to seasonally lower TAM. Moreover, the recent acquisitions of sTec and Virident are expected to have a dilutive effect on the bottom line. Additionally, continued investment in product innovation could result in flattish margins in the near term. Nonetheless, the secular growth of digital data and growing exposure to the small and medium business space are long-term positives. The company is launching storage devices to attract more customers. Moreover, strategic acquisitions to expand its offerings in the SSD segment is expected to improve Western Digital's competitive position.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Western Digital Corporation (WDC),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment