WDC, NAND, NVM, enterprise storage systems, etc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.

SNDK 207.02

+3.9%

Nov 3 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

Recommended by:

franklin1

Sam

From: Bruno Cipolla	12/15/2022 10:43:40 AM
	2 Recommendations of 4823

Western Digital downgraded to Sell at Goldman Sachs; shares plunge PUBLISHED THU, DEC 15 20226:23 AM EST By Senad Karaahmetovic Goldman Sachs analysts downgraded Western Digital (NASDAQ: WDC) to Sell from Neutral as they believe the ongoing downturn in NAND could get worse. The new price target on WDC stock is $31 per share (down from $43), signaling a downside risk of 13.5% relative to yesterday’s closing price. In addition to weakness in the NAND sector, the analysts are cautious over historically low gross margins. They estimate that the non-GAAP gross margin could fall from about 28% in 2022 to around 17% in 2023. “With both revenue and operating profit under pressure, we expect quarterly operating EBITDA, excluding add-backs from WD’s JV with Kioxia, to remain negative throughout 2023, although we project a rebound in CY24 as fundamentals begin to trend toward more normalized levels,” they said in a client note. The combination of these factors “could pose risk to WD’s competitive position, particularly as net debt to TTM EBITDA elevates over the coming quarters.” “Looking ahead, we expect net leverage on the company’s balance sheet to come under greater scrutiny by investors, and may also constrain operating activities in the near-term,” the analysts concluded. Western Digital stock is down nearly 5% minutes before New York opens.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next