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Computer hard drive maker Western Digital Corp. ( WDC ) on Friday received a big downgrade from analysts at Citigroup.

The firm slashed its rating on WDC from "Buy" all the way down to "Sell" and lowered its price target from $53 to $32. That new target suggests a 12.5% downside to the stock's Thursday closing price of $36.59.

A Citigroup analyst noted the move was "…driven by our lowered 4CQ TAM assumption of 140M (vs guidance of 150-155M). We anticipate that GM will be pressured by low utilization, normal price declines, and lower mix of enterprise. For CY13, we are revising down our EPS to $7.80 (from $9.32) given lower shipments of 248M (from 267M) and a more conservative GM assumption of 29.2% (from 30.1%)."

Western Digital shares fell $1.03, or -2.8%, in premarket trading Friday.

The Bottom Line
Shares of Western Digital ( WDC ) have a 2.73% dividend yield, based on last night's closing stock price of $36.59. The stock has technical support in the $30-$32 price area. If the shares can firm up, we see overhead resistance around the $40-$41 price levels.

Western Digital Corp. ( WDC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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