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Western Digital Corporation Message Board

  • getintoh20 getintoh20 May 1, 2014 11:48 AM Flag

    GS pt $78

    GS maintained a Neutral rating on Western Digital Corp. (NASDAQ: WDC) an reduced its price target to $78.00 (from $79.00). Analyst Bill Shope noted healthy Q3 results, although guidance was "tepid."

    "Western Digital reported non-GAAP EPS of $1.94, beating our estimate of $1.89 and consensus of $1.88. A lower than expected tax rate contributed $0.04 to the beat (versus our model), while a higher than expected share count presented a $0.01 headwind," said Shope.

    "Like Seagate (NYSE: STX), WD believes that hyperscale customers are improving the efficiency at which they use storage capacity, and this contributes to the company’s muted near-term demand expectations. Unlike Seagate, however, WD did not observe notable inventory builds at traditional enterprise storage customers, which Seagate had highlighted as another headwind. The companies’ diverging views on the enterprise space add another layer of uncertainty to an already cloudy 2HCY2014 picture. We update our model to reflect this quarter’s report and demand commentary, modestly lowering our FY2014 – FY2016 estimates and our price target," he said

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    • LOL!

      Is this the same Goldman Sachs that has remained neutral as STX & WDC ran to record highs?

      While this might qualify Goldman's Shope as the village idiot of the year among disk drive Analysts, the real story is that Goldman, JP Morgan, Barclays, etc make big bucks by catering their research to hedge fund shorts. With you back again and Goldman penning FUD on the drive stocks, it looks like the cartel is trying to pull off its summer short scam again-LOL!

      • 1 Reply to v1kes_won
      • From 4/12/12 Forbes Interview of Stephen Luczo on Wall Street's pricing of the drive stocks:

        "because the drive stocks are not being priced on fundamentals, they are being priced by large investment banks for volume, and volume requires volatility.

        So that's why all the big firms are in a different camp than the smaller research firms on their perspective of the drive industry. Is it because these are the smart guys, and those aren't. That doesn't make any sense. It is because the banks are MOTIVATED by volatility and the boutique firms aren't. AND therefore the research reflects that. So you can create an environment that always creates doubt with billion dollar market cap swings in a week. It's insane. Why does it work? Because you have TRADERS who love to make that work."

    • GS is always right on the money with this over value stock. Shorts rule this pos, & it will trade under $75 by next week Good job shorts....

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