Western Digital (WDC) Stock: BofA and Cantor See a Lot More Upside – Here’s Why

TLDR

• Bank of America raised its WDC price target from $610 to $732, maintaining a Buy rating, citing strong HDD demand outpacing supply
• Cantor Fitzgerald also lifted its target, from $660 to $900, with an Overweight rating
• WDC beat Q4 earnings: EPS of $2.72 vs $2.39 expected, revenue of $3.34B vs $3.25B expected
• Revenue was up 45.5% year-over-year; Western Digital also raised its quarterly dividend from $0.12 to $0.15
• Institutional ownership stands at 92.51%, with BlackRock the largest holder at 10.38%

Western Digital (WDC) is getting fresh attention from Wall Street after two analyst upgrades in quick succession. The stock opened at $539.00 on Monday, against a 52-week range of $63.67 to $799.87.

Western Digital Corporation, WDC

Bank of America Securities analyst Wamsi Mohan raised his price target on WDC from $610 to $732 on July 1, keeping a Buy rating in place. His reasoning: HDD demand is running ahead of supply, and that imbalance is driving a strong pricing environment.

Mohan also flagged that when exabyte shipments are factored in, Western Digital’s own 25% year-over-year growth outlook is likely to be beaten.

Just days earlier, on June 29, Cantor Fitzgerald made an even bolder move — lifting its target from $660 to $900 while holding an Overweight rating. The firm cited the broader semiconductor industry’s potential to hit $3 trillion by 2029.

Strong Earnings Back Up the Optimism

The bullish calls aren’t coming out of nowhere. Western Digital posted a strong quarter on April 30, reporting EPS of $2.72 — beating the $2.39 consensus by $0.33. Revenue came in at $3.34 billion, ahead of the $3.25 billion estimate.

That revenue figure represents a 45.5% jump compared to the same quarter last year. A year ago, EPS was just $1.36. The turnaround has been steep.

Return on equity came in at 42.95% with a net margin of 55.29%. Q4 2026 EPS guidance is set at $3.10 to $3.40, and sell-side analysts expect full-year EPS of $9.60.

Western Digital also raised its quarterly dividend from $0.12 to $0.15 per share. The dividend was paid on June 17, with a record date of June 5.

Institutional Interest Keeps Building

Institutional investors own 92.51% of WDC. BlackRock holds the top spot at 10.38%, or roughly 35.77 million shares.

Other recent movers include Soroban Capital Partners, which grew its position by 1,926.3% in Q2, and Fred Alger Management, which increased its stake by 4,923.9% in Q3. Kathmere Capital Management lifted its holding by 72.4% in Q1, bringing its total to 8,568 shares worth about $2.32 million.

Norges Bank also entered a new position in Q4, valued at approximately $788.7 million.

The consensus analyst rating sits at “Moderate Buy” with an average price target of $493.52 across 24 analysts — two Strong Buys, 18 Buys, and four Holds.

On the insider side, activity has leaned toward selling. Director Bruce Kiddoo sold 750 shares at $528.52 on May 28. Insider Vidyadhara Gubbi sold 2,475 shares at $556.24 on June 1. Total insider sales over the past three months reached 29,322 shares valued at $12.77 million.

WDC carries a market cap of $185.78 billion, a P/E of 32.18, and a beta of 2.11.

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