Western Digital (WDC) heads into its fiscal third-quarter earnings report on April 30 with three fresh price target upgrades from Wall Street. Bank of America, Wedbush, and Cantor Fitzgerald all raised their targets this week, each pointing to the same story: tight hard disk drive supply and surging AI-related demand.
Western Digital Corporation, WDC
WDC stock has climbed roughly 900% over the past year, trading near $404 as of writing — close to its 52-week high of $416.
Wall Street expects the company to report EPS of $2.40 for Q3 FY26, up 76.5% year-over-year. Revenue is forecast to hit $3.25 billion, a rise of around 42%.
Wedbush analyst Matt Bryson made the most aggressive move, raising his target to $530 from $320. He kept his Buy rating and said the HDD market entered 2026 with a clear supply-demand gap that is continuing to widen.
Bryson pointed to surging AI infrastructure spending and growing data needs for AI inference and training as the key drivers. He expects manufacturing limitations to keep supply tight while demand keeps climbing.
For Q3 specifically, Bryson projects WDC’s nearline unit shipments to rise to 7.6 million, HDD average selling prices to increase 6%, and gross margin to expand 140 basis points to 47.5%.
He did flag some near-term caution, noting that production constraints, long-term supply agreements, and memory-related headwinds could cap the upside in the short run.
BofA’s Wamsi Mohan raised his target to $495 from $415, holding his Buy rating. He echoed the supply tightness theme, calling it a structural shift rather than a short-term quirk. Mohan expects demand to continue outpacing supply and sees room for further price increases.
Mohan’s bull case is striking: he sees a path to 2028 EPS of $33, with dollar-per-terabyte pricing hitting $20 at a 3-year CAGR of 12% and an operating margin of 55%.
Cantor Fitzgerald also joined in, raising its target to $500 from $420 and keeping an Overweight rating. The firm projects gross margins could reach 50% or higher from the September quarter onward, potentially hitting 60% in late 2028.
Cantor raised its 2026 revenue estimate to $14.7 billion and EPS estimate to $12.55, both above Wall Street consensus. For 2027, it sees revenue of $18.2 billion and EPS of $18.50.
One factor analysts keep returning to is Western Digital’s balance sheet. After fully monetizing its Sandisk position, the company now carries zero debt. Cantor believes this could allow WDC to repurchase more than $9 billion through 2028, depending on dividend decisions.
S&P Global Ratings recently upgraded Western Digital’s credit rating to BBB-, citing the company’s debt reduction progress.
Despite the bullish tone from analysts, the average Wall Street price target across all 18 analysts covering the stock sits at $375.56 — roughly 7.5% below the current price, a reflection of how far and fast WDC has already moved.
The company reports fiscal Q3 2026 results on April 30.
The post Western Digital (WDC) Stock: Three Analysts Raise Price Targets Ahead of Earnings Thursday appeared first on CoinCentral.
