Downgrade reflects skepticism over hard disk drive pricing increases sustaining near-term margin expansion for WDC.
Fox Advisors downgraded Western Digital (NASDAQ:WDC) to Equal-Weight from Outperform, citing concerns that hard disk drive pricing expectations may outpace actual increases. The move follows a June 22 note highlighting potential overestimation of near-term pricing power.
JPMorgan had previously raised its price target for WDC to $650 from $530 on June 12, maintaining an Overweight rating. The firm lifted earnings forecasts for HDD companies, anticipating accelerating year-over-year pricing increases and sequential gains in the low- to mid-single digits.
Western Digital develops and sells data storage devices, competing in a sector influenced by AI-driven demand trends. The downgrade contrasts with broader optimism about HDD pricing momentum in coming quarters.