UBS lowers its Western Digital (NYSE:WDC) price target from $101 to $93 and maintains a Neutral rating.
The rating and price target are due to HDD weakness, a declining NAND environment, and the uncertainty with the Toshiba litigation.
But UBS sees promise in Western Digital’s newly announced microwave-assisted magnetic recording (MAMR) tech that enables HDDs to hold more bits without added cost.
Western Digital and Seagate (NASDAQ:STX) were both investigating heat-assisted magnetic recording (HAMR) for the same purpose but UBS thinks MAMR will prove the better solution.
UBS says Seagate’s sales could suffer in 2019 if the company doesn’t come up with its own MAMR response.
Previously: Western Digital hits back at Toshiba's chip unit Plan B (Oct. 10)