Hard Drive Makers Fall on Wedbush Downgrade

Shares of both Seagate Technology (STX) and Western Digital (WDC) are trading lower today, in the wake of somewhat bearish sentiment from Wedbush Securities. Analyst Kaushik Roy downgraded both of the hard-disk drive makers to Neutral from Outperform.

“We want to take some profits and reduce exposure to HDDs as weenter the seasonally soft June quarter,” Roy writes. “Inventories are not bloated at this time, but are starting to creep up and the directional change may make investors more cautious at this time.”

Over the last year, shares of Seagate are up 191%, with Western Digital stock up 89%. The Nasdaq, by comparison has risen 48%.

Roy’s new price targets are $23 for Seagate (from $25) and $48 for Western Digital (from $55).

In today’s trading:

  • Seagate is down 3.3%, or 63 cents to $18.45.
  • Western Digital is down 1.8%, or 73 cents, to $40.36.

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