Citi Raises Western Digital Price Target to $685, Maintains Buy

Citi analysts raised the price target on Western Digital Corporation (NASDAQ:WDC) to $685 from $500 on June 2, while keeping a Buy rating. The adjustment follows the firm's upward revision of estimates in the hard disk drive sector, reflecting growing optimism.

Recommendation Change

• Previous Price Target: $500
• New Price Target: $685
• Rating: Buy (unchanged)

Analyst Rationale

Citi believes Western Digital will benefit from rising demand for high-capacity hard drives, driven by data center expansion and AI applications. Improved cost structure and higher margins also support the positive outlook.

Context

The upgrade comes after the stock's strong performance over the past year, gaining more than 50%. While some other banks remain cautious, the consensus is leaning bullish.

Conclusion

Citi's upgrade signals confidence in Western Digital's prospects, but investors should consider risks from demand volatility and competition in the storage sector.