Key Takeaways
- Bank of America increased its WDC price target from $415 to $495 while maintaining a Buy rating
- Wedbush upgraded its target from $320 to $530, the most aggressive move, with a Buy rating maintained
- Cantor Fitzgerald boosted its target from $420 to $500 while keeping an Overweight rating
- Analysts highlight constrained HDD supply, increasing average selling prices, and robust AI-powered nearline demand
- Western Digital releases fiscal Q3 2026 results April 30; consensus estimates call for $2.40 EPS and $3.25 billion revenue
Western Digital (WDC) enters its fiscal third-quarter earnings announcement on April 30 backed by three new price target increases from major Wall Street firms. This week, Bank of America, Wedbush, and Cantor Fitzgerald all boosted their projections, with each firm emphasizing the same narrative: constrained hard disk drive availability coupled with accelerating AI-fueled demand.
Western Digital Corporation, WDC
Shares of WDC have surged approximately 900% during the past twelve months, currently trading around $404 at the time of writing — approaching its 52-week peak of $416.
Analysts anticipate the storage giant will post earnings per share of $2.40 for fiscal Q3 2026, representing a 76.5% jump compared to the prior year. Revenue projections stand at $3.25 billion, marking roughly a 42% increase.
Wedbush’s Matt Bryson delivered the most bullish revision, elevating his price target from $320 to $530. Maintaining his Buy recommendation, Bryson noted that the HDD market began 2026 facing a pronounced supply-demand imbalance that continues to expand.
Bryson highlighted explosive AI infrastructure investment and expanding data requirements for AI training and inference as primary catalysts. He anticipates manufacturing constraints will maintain supply pressure while demand continues its upward trajectory.
For the upcoming quarter, Bryson forecasts WDC’s nearline unit shipments will climb to 7.6 million units, HDD average selling prices will advance 6%, and gross margins will expand by 140 basis points to reach 47.5%.
However, he acknowledged potential near-term limitations, mentioning that production bottlenecks, long-term supply contracts, and memory-related challenges could restrain immediate upside potential.
BofA and Cantor Reinforce Optimistic Outlook
Bank of America’s Wamsi Mohan elevated his price target from $415 to $495, maintaining his Buy recommendation. He reinforced the supply constraint narrative, characterizing it as a fundamental market shift rather than a temporary phenomenon. Mohan anticipates demand will continue exceeding supply availability with additional room for price appreciation.
Mohan’s optimistic scenario is particularly noteworthy: he envisions a pathway to 2028 earnings per share of $33, with pricing per terabyte reaching $20 at a 3-year compound annual growth rate of 12% and operating margins hitting 55%.
Cantor Fitzgerald similarly participated, increasing its price target from $420 to $500 while retaining an Overweight rating. The firm anticipates gross margins could achieve 50% or above beginning in the September quarter, potentially climbing to 60% by late 2028.
Cantor elevated its 2026 revenue projection to $14.7 billion with EPS estimates of $12.55, both exceeding Wall Street consensus figures. Looking toward 2027, the firm forecasts revenue of $18.2 billion alongside EPS of $18.50.
Financial Position Shows Remarkable Strength
A recurring theme among analysts is Western Digital’s strengthened financial position. Following the complete monetization of its Sandisk holdings, the company now operates with zero debt. Cantor suggests this financial flexibility could enable WDC to execute share repurchases exceeding $9 billion through 2028, contingent on dividend policy decisions.
S&P Global Ratings recently elevated Western Digital’s credit rating to BBB-, acknowledging the company’s progress in debt reduction.
Notwithstanding the optimistic analyst sentiment, the average Wall Street price target among all 18 covering analysts remains at $375.56 — approximately 7.5% beneath the current trading price, underscoring how dramatically and rapidly WDC shares have already appreciated.
The company announces fiscal Q3 2026 financial results on April 30.
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