Key Highlights
- Bank of America increased its WDC stock price target from $415 to $495 while maintaining a Buy rating
- Wedbush boosted its price objective from $320 to $530, also keeping a Buy rating
- Cantor Fitzgerald elevated its target from $420 to $500 with an Overweight rating
- Analysts point to constrained hard disk drive supply, increasing average selling prices, and robust AI-fueled nearline demand
- Western Digital is scheduled to release fiscal Q3 2026 results on April 30; consensus estimates call for $2.40 EPS and $3.25 billion in revenue
As Western Digital (WDC) prepares to unveil its fiscal third-quarter financial results on April 30, three prominent Wall Street analysts have issued updated price targets that reflect growing optimism. Bank of America, Wedbush, and Cantor Fitzgerald each boosted their projections this week, unified by a common narrative: constrained hard disk drive availability coupled with accelerating demand driven by artificial intelligence applications.
Western Digital Corporation, WDC
Shares of WDC have surged approximately 900% during the past twelve months, currently hovering around $404 at the time of this writing—approaching the 52-week peak of $416.
Analyst consensus anticipates the storage solutions provider will post earnings per share of $2.40 for the third quarter of fiscal year 2026, representing a 76.5% increase from the year-ago period. Top-line revenue projections stand at $3.25 billion, reflecting approximately 42% year-over-year growth.
Wedbush’s Matt Bryson delivered the most bullish revision, elevating his price target from $320 to $530 while reaffirming his Buy recommendation. Bryson emphasized that the HDD market began 2026 facing a pronounced supply-demand imbalance that continues to intensify.
He highlighted escalating AI infrastructure investments and expanding data requirements for AI training and inference workloads as primary catalysts. Bryson anticipates manufacturing constraints will maintain tight supply conditions even as demand continues its upward trajectory.
For the upcoming third quarter specifically, Bryson forecasts WDC’s nearline unit shipments will reach 7.6 million units, with hard disk drive average selling prices climbing 6% and gross margin expanding by 140 basis points to 47.5%.
However, Bryson acknowledged certain near-term challenges, observing that production limitations, extended supply contracts, and memory-related obstacles could potentially limit immediate upside potential.
Bank of America and Cantor Fitzgerald Join the Upgrade Wave
Bank of America’s Wamsi Mohan lifted his price objective 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, creating opportunities for additional pricing power.
Mohan’s optimistic scenario is particularly noteworthy: he envisions a trajectory toward 2028 earnings per share of $33, with dollar-per-terabyte pricing reaching $20 at a three-year compound annual growth rate of 12% and operating margins expanding to 55%.
Cantor Fitzgerald similarly participated in the upgrade cycle, raising its target from $420 to $500 while maintaining an Overweight stance. The firm anticipates gross margins could achieve 50% or higher beginning with the September quarter, potentially climbing to 60% by late 2028.
Cantor elevated its 2026 revenue projection to $14.7 billion and EPS forecast to $12.55, both surpassing Street consensus. Looking to 2027, the firm anticipates revenue of $18.2 billion with earnings per share of $18.50.
Strengthened Financial Position
A recurring theme among analysts involves Western Digital’s improved balance sheet health. Following the complete monetization of its Sandisk holdings, the company has eliminated all outstanding debt. Cantor suggests this financial flexibility could enable WDC to execute share repurchases exceeding $9 billion through 2028, contingent upon dividend policy decisions.
S&P Global Ratings recently elevated Western Digital’s credit assessment to BBB-, recognizing the company’s debt reduction achievements.
Notwithstanding the optimistic analyst sentiment, the average Wall Street price target among all 18 firms covering the stock remains at $375.56—approximately 7.5% beneath current trading levels, underscoring how dramatically and rapidly WDC shares have already appreciated.
The company is scheduled to announce fiscal third-quarter 2026 financial results on April 30.
