In a significant boost to investor confidence, prominent financial firms Cantor Fitzgerald and Goldman Sachs have both adjusted their price targets upwards for Western Digital Corporation (NASDAQ: WDC). This reevaluation follows the company's recent Innovation Day, where key insights into technological progress, future product strategies, and an updated financial model were presented. The revised outlook underscores a growing belief in Western Digital's potential for enhanced growth and profitability, particularly in the burgeoning AI sector.
Cantor Fitzgerald, for instance, significantly elevated its price target for Western Digital Corporation (NASDAQ: WDC) from $325 to $420, maintaining an Overweight rating. This decision came on February 4, immediately after the company's Innovation Day in New York City. During this event, Western Digital's leadership team detailed advancements in technology and outlined comprehensive product roadmaps. Crucially, they also shared a revised financial model that indicated a stronger-than-anticipated future performance for the data storage giant.
The financial institution highlighted that Western Digital's projected growth trajectory and profitability metrics are now "substantially superior" to previous company and industry forecasts. Cantor Fitzgerald's analysts now predict the company's earnings per share for the calendar year 2028 could fall within an impressive range of $19 to $32, signaling a robust long-term earnings potential driven by its strategic initiatives.
Adding to this positive sentiment, Goldman Sachs also revised its price target for Western Digital Corporation (NASDAQ: WDC) on February 3. The investment bank increased its target from $220 to $250, while retaining a Neutral rating. This adjustment was made after Western Digital confirmed that its groundbreaking Heat-Assisted Magnetic Recording (HAMR) product rollout remains on schedule for the first half of 2027. Furthermore, the company announced that an additional customer has initiated the qualification process for its HAMR solutions, indicating increasing market adoption and confidence in the technology.
Following these updates, Goldman Sachs recalibrated its non-GAAP earnings per share estimates for Western Digital for the 2026-2028 period, raising them by an average of 22%. This upward revision reflects the market's positive reception to the company's updated long-term guidance and the perceived strengthening of its market position as a leading manufacturer of hard disk drives and other data storage products.
These bullish adjustments from leading financial analysts reflect a renewed optimism surrounding Western Digital's strategic direction and its capacity to capitalize on emerging market opportunities, particularly within the AI landscape. The company's focus on innovative technologies like HAMR and its ability to attract new customers for these advanced solutions are key factors contributing to these positive reevaluations. Investors are now keenly watching how these developments will translate into sustained financial performance and market leadership.