Western Digital Corp.  (WDC)  jumped higher Friday, closing higher by 4.13% at $106.45. Shares also hit a new 52-week high in the session.

So why's the stock rallying? Baird analyst Tristan Gerra upgraded the stock to outperform from neutral and raised his price target to $135 from $93. This was a "very large price target" increase, TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment.

Western Digital makes flash storage and hard drives, Cramer said. He told viewers that when he recently spoke with HP Inc.  (HPQ) CEO Dion Weisler, he wanted to hear an update on flash prices, or NAND.

Weisler said that DRAM prices remain elevated, something that continues to benefit Micron Technology, Inc. (MU) . However, he wouldn't commit to saying that NAND prices will significantly weaken and that bodes well for Western Digital.

Like Weisler, Gerra's observations show a significant increase in DRAM prices, but the reduction in flash pricing was weaker than expectations. His $135 price target implies more than 27% upside to current levels. 

"Flash prices are still elevated," said Cramer, who also manages the Action Alerts PLUS charitable trust portfolio. As a result, the stock "could easily trade" to the analyst's price target, he concluded.

More from Stocks

Video: nLight Shares Surge Following Nasdaq Debut

Video: nLight Shares Surge Following Nasdaq Debut

Amazon's First-Quarter Earnings Live Blog

Amazon's First-Quarter Earnings Live Blog

5 Things We Just Learned From AMD, Qualcomm, Samsung and PayPal's Earnings

5 Things We Just Learned From AMD, Qualcomm, Samsung and PayPal's Earnings

Stocks Rise Sharply, Facebook Ignites a Nasdaq Rally

Stocks Rise Sharply, Facebook Ignites a Nasdaq Rally

Snap Hopes Latest Version of Spectacle Smart Glasses Makes a Better Impression

Snap Hopes Latest Version of Spectacle Smart Glasses Makes a Better Impression