Key Takeaways
- Bank of America increased its WDC price target from $415 to $495 while maintaining a Buy rating
- Wedbush boosted its target from $320 to $530, keeping its Buy recommendation
- Cantor Fitzgerald elevated its target from $420 to $500 with an Overweight rating intact
- Analysts highlight constrained HDD supply, increasing average selling prices, and robust AI nearline demand
- Western Digital announces fiscal Q3 2026 results on April 30; consensus calls for $2.40 EPS and $3.25 billion revenue
As Western Digital (WDC) prepares to unveil its fiscal third-quarter results on April 30, the storage technology company has received a trio of upward price target revisions from prominent Wall Street analysts. Bank of America, Wedbush, and Cantor Fitzgerald each increased their projections this week, all citing a common narrative: constrained hard disk drive availability combined with explosive AI-fueled demand.
Western Digital Corporation, WDC
Shares of WDC have skyrocketed approximately 900% during the past twelve months, currently trading around $404 — approaching its 52-week peak of $416.
Analyst consensus anticipates the company will post earnings per share of $2.40 for its fiscal Q3 2026, representing a 76.5% year-over-year increase. Revenue projections stand at $3.25 billion, marking roughly a 42% gain.
Wedbush’s Matt Bryson executed the most bullish adjustment, elevating his price target from $320 to $530 while maintaining his Buy rating. Bryson noted that the HDD market began 2026 facing a pronounced supply-demand imbalance that continues to intensify.
Bryson highlighted accelerating AI infrastructure investments and expanding data requirements for AI training and inference workloads as primary catalysts. He anticipates manufacturing constraints will maintain tight supply conditions even as demand escalates.
For the third quarter specifically, Bryson forecasts WDC’s nearline unit shipments will reach 7.6 million units, HDD average selling prices will climb 6%, and gross margin will expand by 140 basis points to 47.5%.
However, he acknowledged some near-term considerations, mentioning that production limitations, long-term contractual commitments, and memory-sector challenges could moderate immediate upside potential.
Additional Support from BofA and Cantor
Bank of America’s Wamsi Mohan lifted his price target from $415 to $495 while retaining his Buy rating. Mohan reinforced the supply constraint narrative, characterizing it as a fundamental market transformation rather than a temporary phenomenon. He anticipates demand will persistently exceed supply with continued pricing power.
Mohan’s optimistic scenario is noteworthy: he envisions a potential pathway to 2028 EPS of $33, with dollar-per-terabyte pricing reaching $20 at a 3-year compound annual growth rate of 12% and operating margins hitting 55%.
Cantor Fitzgerald similarly raised its target from $420 to $500 while maintaining an Overweight rating. The firm projects gross margins could achieve 50% or greater starting in the September quarter, potentially climbing to 60% by late 2028.
Cantor revised its 2026 revenue projection upward to $14.7 billion with EPS of $12.55, both exceeding Wall Street consensus estimates. For 2027, the firm anticipates revenue of $18.2 billion and EPS of $18.50.
Strengthened Financial Position
A recurring theme among analysts is Western Digital’s improved financial foundation. Following the complete monetization of its Sandisk stake, the company now operates with zero debt. Cantor estimates this positioning could enable WDC to execute share repurchases exceeding $9 billion through 2028, subject to dividend policy decisions.
S&P Global Ratings recently elevated Western Digital’s credit rating to BBB-, acknowledging the company’s debt reduction achievements.
Despite the optimistic analyst sentiment, the average Wall Street price target among all 18 covering analysts stands at $375.56 — approximately 7.5% beneath the current trading price, underscoring how substantially and rapidly WDC shares have already appreciated.
The company is scheduled to release fiscal Q3 2026 financial results on April 30.
