NEW YORK (TheStreet) -- Shares of Western Digital (WDC) - Get Report are increasing 3.44% to $45.11 on Wednesday morning after RBC Capital Markets suggested its competitor Seagate Technology (STX) could report better-than-expected results for the 2016 fiscal fourth quarter, Barron's reports.
Seagate is slated to report earnings on July 29, but the firm said the electronic data storage company could pre-announce results before that date.
"Given STX has negatively pre-announced 3 out of last 4 quarters, its notable there is potential for upside bias this time around (assuming good operational execution)," RBC Capital wrote in an analyst note this morning.
The firm believes the total drive market may have shipped 97 million to 98 million units in the June quarter, higher than Seagate's forecast for a 90-million unit total addressable market.
This would add 5 cents to 10 cents per share and $50 million to $100 million in revenue to consensus estimates of 13 cents per share and revenue of $2.34 billion, Barron's noted.
RBC Capital maintained its "sector perform" rating and $24 price target on Seagate stock.
Western Digital is an Irvine, CA-based computer data storage company and hard disk drive manufacturer.
Shares of Seagate are climbing 4.88% to $23.63 on Wednesday morning.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on Western Digital stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
But the team also finds weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net incoe.
Recently, 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.
You can view the full analysis from the report here: WDC