Mizuho has raised its price target on Western Digital Corp. to $265.00 from $240.00 and maintained an Outperform rating on the stock. Shares of Western Digital are trading at $254.60 and have returned 396.84% over the past 12 months, recently reaching new 52-week highs.
The increase in Mizuho's target equates to roughly a 10.4% bump relative to its prior $240.00 target. The firm pointed to growing demand driven by artificial intelligence workloads as a primary factor likely to push up nearline hard disk drive (HDD) average selling prices, which in turn could create upside risk to the company's guidance.
Mizuho highlighted third-market pricing signals that imply quarter-over-quarter HDD ASP growth in the range of 15-20% or higher, indicating stronger-than-expected pricing power in the HDD segment. The firm said its $265 target is founded on a 26x multiple applied to Western Digital's estimated fiscal 2027 earnings per share, and it cited both expanding peer group multiples and the potential for ASP upside as reasons to justify the higher valuation.
Data shows six analysts have recently revised their earnings forecasts for the company upward for the upcoming period, reflecting a broader uptick in sell-side expectations. For investors seeking deeper research, comprehensive Pro Research Reports covering Western Digital and more than 1,400 other names are available for further analysis.
Other sell-side moves on the company have been notable. Rosenblatt raised its price target to $270 from $165 while maintaining a Buy rating. Bank of America Securities lifted its target to $257 from $197, also maintaining a Buy rating and stating an expectation that Western Digital will report revenue, margins, and earnings per share at the top end of its guidance range for the upcoming fiscal second-quarter 2026 earnings report. Evercore ISI increased its target to $230 from $190 and kept an Outperform rating, adding that it expects Western Digital to monetize its remaining stake in SanDisk in the near future.
In addition to these moves, the reporting noted that Mizuho continues to hold an Outperform rating with a $180 price target, and emphasized the company’s strong visibility with its largest customers, who have extended purchase orders through the end of calendar 2026 and into 2027. These varied analyst actions illustrate an active reassessment of Western Digital’s near-term pricing prospects and longer-term valuation metrics among broker research teams.
Overall, the cluster of price-target increases and raised earnings expectations point to growing optimism among analysts about Western Digital’s revenue and margin trajectory, driven in part by anticipated pricing improvements in the HDD market and possible balance-sheet actions such as asset monetization.
Clear summary
Mizuho has boosted its Western Digital price target to $265 from $240 and kept an Outperform rating, citing AI-driven demand and meaningful quarter-over-quarter HDD ASP gains. Multiple other brokers have also raised targets or reaffirmed positive ratings, while the stock has surged nearly 397% over the last year.
Key points
- Mizuho raised its price objective on Western Digital to $265 from $240 and maintained an Outperform rating.
- The firm based the new target on a 26x multiple of estimated fiscal 2027 EPS and noted 15-20%+ quarter-over-quarter HDD ASP growth from third-market pricing.
- Several brokers including Rosenblatt, BofA Securities, and Evercore ISI also raised price targets or reiterated positive ratings, while data shows six analysts have recently lifted earnings expectations.
Risks and uncertainties
- HDD ASPs may not sustain the 15-20%+ quarter-over-quarter growth implied by third-market pricing, which would affect revenue and margin upside expectations - impacting the storage and enterprise hardware sectors.
- Analysts’ valuation assumptions, such as the 26x fiscal 2027 EPS multiple used by Mizuho, depend on peer-group multiples and ASP improvements; if multiples compress or pricing weakens, target valuations could be challenged - affecting equity markets and sector valuations.
- Planned or potential balance-sheet actions, including monetization of stakes such as the remaining SanDisk interest referenced by Evercore ISI, present execution and timing uncertainty that could influence near-term financial results and investor expectations - relevant to investor relations and corporate finance considerations.