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© Reuters Too early to build a position in Western Digital, Benchmark reiterates Hold rating
By Davit Kirakosyan
Benchmark reiterated its Hold rating on Western Digital (NASDAQ:). Although the company reported negative gross margins and projected another major loss this quarter, some investors found hope in Micron Technology’s (NASDAQ:) Q2/23 report of improving inventories in certain end markets and the prospect of a better supply-demand balance.
While relevant to Western Digital, Benchmark does not recommend taking a more aggressive stance on the shares at this time.
The consensus 2024 non-GAAP earnings estimate for Western Digital has decreased by $0.40 in the last 30 days, settling at $1.26 per diluted share. Benchmark anticipates continued losses for the company throughout 2024 due to the significant decline in NAND pricing and high levels of NAND inventory, both of which are several quarters away from being healthy.
Shares fell yesterday/today after the company reported a network security incident that disrupted its business operations.
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