Western Digital Price Targets Lifted to $350–$405 on AI Demand
UBS, Citigroup and Morgan Stanley lifted Western Digital’s price targets to $350, $405 and $380 respectively, driving the shares to a fresh 52-week high. The company reported operating cash flow of $745 million and free cash flow of $653 million but carries $4.7 billion in debt against $2 billion cash.
1. Analyst Upgrades and Price Targets
UBS raised its price target to $350 from $285 and Citigroup set a $405 target with a buy rating, while Morgan Stanley increased its projection to $380, reflecting widespread optimism among major brokerages.
2. AI-Driven Demand
Strong demand for data center components tied to artificial intelligence workloads propelled Western Digital shares to a fresh 52-week high, as enterprises expand storage capacity for AI training and inference tasks.
3. Cash Flow and Debt Profile
Western Digital reported operating cash flow of $745 million and free cash flow of $653 million in the latest quarter, but carries $4.7 billion in debt against $2 billion in cash reserves, highlighting leverage concerns.