Longbow Research analyst Nikolay Todorov upgraded Western Digital to Buy from Neutral with a $65 price target. The stock closed Friday up $1.00 to $51.83. NAND fundamentals are bottoming and "there is a line of sight to cyclical recovery," Todorov tells investors in a research note. The analyst believes NAND production is likely to be further rationalized with industry profitability under pressure and points out that pricing has recently shown signs of stabilization. Further, a hard drive revenue and gross margin recovery in the second half of 2019 does not appear to be fully contemplated by the Street, says Todorov. He sees an "asymmetric risk/reward" for Western Digital shares at current levels.

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.