More from Dividend.com
Referenced Stocks

Western Digital Catches a “Sell” Downgrade from Citigroup; Margins Pressures, Weaker Shipments Ahead (WDC)

By Dividend.com,  October 12, 2012, 08:40:43 AM EDT

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 .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: WDC



Latest News Video

Anti-Islamist English Defense League Takes to Streets of Newcastle
Anti-Islamist English Defense Leagu...


Sign-in
Existing NASDAQ.com member? Log in here.

By signing into to the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.

From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.24 0.03  0.23%
FB $ 24.32 0.74  2.95%
SIRI $ 3.58 0.04  0.99%
GE $ 23.53 0.13  0.55%
PFE $ 29.04 0.07  0.24%
MSFT $ 34.27 0.12  0.35%
INTC $ 23.93 0.12  0.50%
P $ 16.43 0.73  4.25%