Hard disk drive makers jump after analyst sees more profitable sales

theflyonthewall.com

Hard disk drive makers Seagate Technology (STX) and Western Digital (WDC) are advancing after an analyst wrote that the hard disk drive sector appears to be stable. WHAT'S NEW: In a note to investors earlier today, Brean Murray analyst Ananda Baruah wrote that sales of hard disk drives appear to be trending in-line with expectations, while stronger than expected sales of more profitable devices could cause both companies to report better than expected results for their quarters ending in March. Western Digital is trading at a significantly lower price to earnings ratio than Seagate, the analyst added. Baruah maintained a $39 price target on Seagate and a $54 price target on Western Digital. He has Buy ratings on both stocks. WHAT'S NOTABLE: In 2013, Western Digital's shares have climbed about 15.5%, while those of Seagate have risen about 18%. TODAY'S PRICE ACTION: In early afternoon trading, Western Digital rose 3.5% to $49, while Seagate climbed 4% to $36.

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