Western Digital: Barclays Upgrades To Overweight; Ups Target

Western Digital (WDC) shares are getting a modest lift this morning from Barclays Capital analyst Ben Reitzes, who raised his rating on the stock to Overweight from Equal Weight, with a new price target of $39, up from $31; the stock closed yesterday at $31.59.

“While we see long-term challenges for the PC and HDD markets, we believe that the worst of the recent inventory correction is over and margins can bottom in calendar Q4, presenting a compelling trading opportunity,” he writes. “Checks over the last week indicate that orders are beginning to stabilize in Q4 and even increase” for Q1 2011.

Reitzes inched up his EPS forecast for the June 2011 fiscal year to $2.86, from $2.82; for FY 2012, he goes to $3.65, from $3.50.

WDC is up 37 cents, or 1.2%, to $31.96.