NEW YORK (TheStreet) -- Shares of Western Digital (WDC) - Get Report are up by 4.75% to $44.29 early Wednesday morning, as Barclays upgraded the stock to "overweight" from "equal weight" and raised its price target to $60 from $57.
"We think the stock has adequately de-risked. In our view, the risk-reward profile tilts toward more upside potential than downside," Barclays analysts said in an investor note, explaining their adjusted rating.
The Irvine, CA-based data storage solutions provider's hard disk drive (HHD) is not being replaced with the more popular solid-slate drive (SSD) as fast as previously expected, Barclays stated as one of the "de-risk" factors.
In addition, earlier in the month, Western Digital acquired flash memory provider SanDisk for about $19 billion.
SanDisk expects to produce SSDs with 3D NAND by the end of this year, the firm noted. Planar 3D NAND is the next level of 2D NAND, used in memory cards and SSDs.
Separately, TheStreet Ratings rated Western Digital as a "hold" with a score of C-.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.
Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The primary factors that have impacted this rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins.
However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.
You can view the full analysis from the report here: WDC