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Fly News Breaks for June 4, 2019
Jun 4, 2019 | 07:04 EDT
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.
News For WDC;STX From the Last 2 Days
Jul 22, 2019 | 19:11 EDT
U.S. President Donald Trump agreed to grant timely licensing decisions to U.S. tech firms that seek to continue sales to China's Huawei as the White House aims to restart trade negotiations with Beijing, the Wall Street Journal's Alex Leary and Josh Zumbrun report. The White House made the announcement following a meeting the president held with CEOs from seven major chip makers and technology companies, including Qualcomm (QCOM), Intel (INTC), and Google (GOOGL), the authors note. "The CEOs expressed strong support of the president's policies, including national security restrictions on United States telecom equipment purchases and sales to Huawei," the White House said. "They requested timely licensing decisions from the Department of Commerce, and the president agreed. The group was also optimistic about United States 5G innovation and deployments." Also present at the meeting were the CEOs of Micron (MU), Western Digital (WDC), Cisco (CSCO), and Broadcom (AVGO), the authors note. Reference Link