Deutsche Bank analyst Sidney Ho lowered his price target for Western Digital (WDC) to $55 from $60 after trimming his estimates to reflect NAND pricing. The analyst, however, still favors Western Digital over Seagate (STX). He does not expect the Huawei ban and China tariffs to have a significant direct impact on Western Digital, but he adds that they create more uncertainties about end-demand growth. Further, recent comments from several companies in the supply chain seem to suggest that the recovery for enterprise spending may have slipped by one-to-two quarters, Ho tells investors in a research note. As a result, he trimmed his estimates, primarily to reflect lower NAND pricing assumptions. The analyst, however, believes the weakness of Western Digital shares, down 27% since the beginning of May, is likely overdone. Ho recommends investors buy the shares at these levels and keeps a Buy rating on the name.

BofA raised the firm's price target on Western Digital to $85 from $75 and keeps a Buy rating on the shares. The firm sees both the HDD and NAND businesses being close to the bottom of the cycle and sees a potential unlock of shareholder value as the company remains on track to split the HDD and NAND business in the second half of 2024.