Highlighting Western Digital as a favorite idea for 2020, Craig-Hallum analyst Christian Schwab believes memory prices and gross margins are set to improve through 2020. The analyst also thinks the company will raise NAND OEM prices in the December and March quarters and that NAND gross margins can return to more normalized 40% range over time versus 19.3% in the most recent quarter. Additionally, Schwab says Western Digital can drive its targeted 4%-8% topline growth, can be a $18B-plus business within a few years and be operating at the mid-point of its 20%-25% operating margin target and drive annual EPS power of about $11. The analyst has a Buy rating on the shares.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here