The firm lowered its price target as the enterprise storage market declines worse than expected and the PC market weakens further.
"Western Digital's SSD (Solid-State Drives) growth decelerates, and web 2.0 build-outs and capacity additions are weaker than expected," Jefferies analysts said.
Additionally, PC HDD (Hard Disk Drives) shipments decline due to weakening PCs and SSD penetration increases in notebooks, Jefferies noted.
Western Digital is a data storage solutions company that provides data storage solutions to enable consumers, businesses, governments and other organizations to create, manage, experience and preserve digital content.
Separately, TheStreet Ratings team rates WESTERN DIGITAL CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WESTERN DIGITAL CORP (WDC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: