Western Digital Analyst Is In No Hurry To Reverse His Cautious Stance

Benchmark analyst Mark Miller lowered the price target on Western Digital Corp WDC to $28 from $34 and kept a Sell rating.
He re-rated after "again" lowering his FY23 estimates due to concerns about the deterioration of business conditions, NAND pricing, and increasing chip inventories.
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Micron Technology, Inc MU indicated business conditions remain weak and guided Q1 well below expectations last night.
He cut WDC's non-GAAP EPS and sales estimates for the September and December quarters and FY23.
Besides weak business conditions, another concern is cash management, he noted.
He continued to urge caution, pending signs of improvement in NAND pricing, greater visibility on the direction of the macro economy and the cash flow, and improvement or stabilization in earnings expectations.
While some investors have hopes for a possible spin-out to unlock value at Western Digital, he believes the investment environment may not be conducive for "some time for such a move."
Price Action: WDC shares traded higher by 2.95% at $33.13 on the last check Friday.

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