Update shared on09 Sep 2025
Fair value Increased 1.19%Analysts have raised Western Digital's price target to $89.14, driven by accelerating AI-led storage demand, improving fundamentals, and greater confidence in the company’s technology roadmap, partially offset by dilution from convertible notes.
Analyst Commentary
- Bullish analysts cite accelerating AI-driven demand for storage, forecasting robust fundamentals and industry-wide tailwinds into 2026.
- Positive management meetings and technology roadmaps have led to increased conviction that Western Digital is not a technology laggard, with HDDs highlighted as particularly attractive end-markets.
- Upward revisions to earnings and shipment estimates reflect sustained cloud momentum, expected beat/raise quarters, and strong underlying EB shipment growth.
- Improving gross margins and expanding profitability position Western Digital for valuation parity with peers amid a structurally stronger industry backdrop.
- Share count dilution from convertible note issuance was incorporated by some analysts, partially offsetting otherwise bullish revisions.
What's in the News
- Western Digital completed the repurchase of 2.8 million shares for $151.12 million, representing 0.8% of shares outstanding.
- The company issued financial guidance, expecting fiscal Q1 2026 revenues of $2.7 billion.
Valuation Changes
Summary of Valuation Changes for Western Digital
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $88.10 to $89.14.
- The Consensus Revenue Growth forecasts for Western Digital has risen slightly from 7.3% per annum to 7.6% per annum.
- The Discount Rate for Western Digital has fallen slightly from 8.63% to 8.41%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.