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Thursday, Jun 27
More on Longbow's upgrades of Seagate (STX +5%) and Western Digital (WDC +3.9%): Analyst Joseph...
More on Longbow's upgrades of Seagate (STX +5%) and Western Digital (WDC +3.9%): Analyst Joseph Wittine thinks hard drive shipment volumes bottomed in 1H, believes pricing has been "relatively stable," and sees higher-margin enterprise (cloud-driven) and company-branded drive sales offsetting PC weakness. He adds "non-PC HDD sales are now eclipsing PC HDD sales for WD and Seagate," and considers shares undervalued based on respective forward free cash flow forecasts of $2.1B and $2B. Also: In spite of the popularity of flash memory in cloud deployments, Wittine estimates ~75% of cloud storage will still be HDD-based. (Deutsche's upgrades) (Jim Chanos)