NEW YORK (TheStreet) -- Western Digital (WDC) stock declined by 5.09% to $42.47 on heavy volume in Monday's trading session, after CLSA cautioned that the data storage solutions company's proposed takeover of SanDisk (SNDK) might be at risk.
The firm downgraded SanDisk today, noting that Chinese investment company Unisplendor might pull its planned 15% investment in Western Digital, which could ultimately threaten the companies' proposed merger, Barron's reports.
The Unisplendor stake still needs CFIUS approval, and it's unclear whether the company can raise the capital or if it will continue with the deal even after Western Digital's stock has dropped to $42.47 per share, compared to the $92.50 per share investment price, CLSA continued, Barron's adds.
"Without Unisplendour's investment, a WD shareholder vote is needed which may not pass," the firm wrote.
About 5.46 million shares of Western Digital were traded today, compared to the company's average trading volume of roughly 3.88 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
Western Digital's strengths such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels are countered by 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
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 article's author.