Bank of America Points to Supply-Demand Imbalance Favoring Western Digital (WDC)

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Bank of America and Cantor Fitzgerald have both raised their price targets and reiterated Buy/Overweight ratings for Western Digital (WDC), citing a favorable supply-demand imbalance in the hard disk drive market. Analysts note that tight supply, driven by manufacturers not adding unit capacity, and strong demand are allowing for price increases. The company’s recent monetization of SanDisk and zero-debt balance sheet are expected to support significant free cash flow, share buybacks, dividend growth, and margin expansion.

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