Brean Murray Has Buy on Western Digital

Brean Murray is out with a research report on Western Digital (NYSE: WDC) and it has a Buy rating and a $40 price target on shares.

In a note to clients, Brean Murray writes, "As we think about Dec Q guidance relative to Street, “all things equal” we believe WDC can reasonably achieve both the units (we believe ~56M) and GM (~20%) to guide to Street EPS of $1.10 – and we actually see upside potential for the guide based on GM appreciation potential to the loss of Enterprise drive share. Finally, we note that the caveat to “all things equal” is that we're assessing what the potential impact to Dec Q necessary to achieve Dec Q Street EPS."

Shares of WDC gained 95 cents yesterday to close at $28.88, a gain of 3.4%.