Deutsche Bank analyst Sidney Ho raised his price target for Western Digital to $85 from $80 saying the company reported strong results and is now expecting an acceleration in flash gross margins in the first half of 2020. The analyst believes strong demand and rising flash pricing provides upside potential for Western Digital through 2020. He keeps a Buy rating on the shares.
Reports Q1 revenue $3.9B, consensus $3.83B. Client Devices increased 20%, Data Center Devices and Solutions revenue declined 26%, and Client Solutions declined 5% year-over-year. The company said, "While we are still managing through macro uncertainty, during the quarter we benefitted from strength particularly in the retail sector, driven by favorable macro and market dynamics, as well as the brand recognition of our products. Our diversified storage portfolio strategy implemented through our recently announced organizational structure will enable us to accelerate growth, improve our focus, and drive sustainable, long-term shareholder value."