Western Digital’s Stock (NASDAQ:WDC) Named Top Pick: Price Target Moves Higher

Western Digital's stock (NASDAQ:WDC) has been coming under increased attention from analysts, most notably from Morgan Stanley, leading to significant adjustments in its stock price targets and ratings. The latest upgrade designates Western Digital as Morgan Stanley's Top Pick, replacing Seagate (STX) within its coverage.

The stock is currently trading at $86.88, up more than 80% YTD having gained 4.99% during yesterday's trading session.

Morgan Stanley's analyst, Erik Woodring, raised the firm's price target on Western Digital to $99 from $92, reiterating an Overweight rating. This decision follows meetings with CFO Kris Sennaesal and CEO Irving Tan, where the firm gained increased confidence in Western Digital's technology roadmap.

The analyst believes the market's perception of the company as a technology laggard is misplaced. The firm also stated that HDDs “remain the most attractive end-market within our hardware coverage.”

Throughout 2025, Morgan Stanley has progressively increased its price targets for Western Digital. On April 16th, an Overweight rating was assigned with a price target of $46.00, driven by the belief in sustained demand for hard disk drives (HDDs) and Western Digital's perceived undervaluation compared to Seagate Technology. This was followed by an increase to $54.00 on May 1st, maintaining the Overweight rating, based on Western Digital's strong position in the HDD sector and improved gross margins.

On June 17th, the price target was further raised to $78.00, citing enhanced confidence in the company's competitive edge and progress in reducing debt. The rise to $92.00 late July, with the Overweight rating reaffirmed, followed Western Digital's strong financial performance and highlighting robust demand for HDDs.

Analysts have underscored several factors contributing to the positive sentiment surrounding Western Digital, including its competitive positioning and financial performance. The company's financial results have consistently exceeded expectations, fueled by strong HDD demand and improved gross margins. Additionally, Western Digital's efforts to reduce debt and potentially initiate a dividend in the coming months have been viewed favorably.