Shares of Western Digital Corporation (NASDAQ: WDC) are up Monday following positive analyst coverage from Rosenblatt. Here’s what you need to know.

What To Know: Rosenblatt analyst Kevin Cassidy maintained Western Digital with a Buy rating and raised the price target from $90 to $125, citing a full backlog of orders in addition to an increased average selling price of the company’s hard disk drives.

“The Age of AI runs on data. Hard disk drives offer the lowest cost of mass data storage. Recent announcements for new data center builds have us confident that the demand for mass storage will exceed supply through FY27,” Cassidy wrote in a note to clients.

The Rosenblatt analyst noted that in the era of artificial intelligence, hard disk drives will be more valuable as they are a key part of AI infrastructure. Cassidy also believes Western Digital’s build-to-order strategy reduces the risk of inventory building up.

The analyst expects Western Digital to get upward revisions from analysts based on strong annual growth forecasts, expanding margins and a robust backlog. Cassidy’s revised valuation is based on a 16 times adjusted earnings multiple on the company’s 2027 earnings, up from a previous outlook of 13 times earnings.

Western Digital has a consensus Buy rating from analysts with an average price target of $95.04. The Street-high target is $160 and the Street-low forecast is $53. Western Digital shares are up approximately 42% over the past month.

Cantor Fitzgerald and BofA Securities also raised price targets on Western Digital in recent weeks, signaling optimism about the company’s future trajectory. In Western Digital’s latest earnings report, the company beat analyst expectations and issued upbeat guidance.

WDC Price Action: Western Digital shares were up 7.11%, trading at $114.57 at the time of publication on Monday, according to Benzinga Pro.

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