It’s Up, Up and Away for This Cloud Stock

WDC broke to an all-time high from a series of consolidations following an upgrade

   
It’s Up, Up and Away for This Cloud Stock

Western Digital (WDC) — Several weeks ago, I noted that while cloud computing stocks had not kept pace with the market this year, the sector was showing signs of renewed interest and could be a top performer in 2014.

S&P notes that WDC should benefit from healthy storage demand aided by cloud computing. And on Wednesday, Morgan Stanley (NYSE: MS) analyst Katy L. Huberty upgraded the stock from “equal weight” to “overweight,” reiterating the $85 price target. WDC responded by breaking to a new all-time high from a series of consolidations.

The company earned $8.53 in fiscal 2013, ended in June, and consensus estimates are for $8.08 in fiscal 2014 and $8.18 in fiscal 2015.

Technically the path of least resistance points higher with a three-month target of $85. WDC could also be purchased as a long-term investment in the expanding cloud computing group.

12 05 13 wdc 300x192 It's Up, Up and Away for This Cloud Stock
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chart key 300x84 It's Up, Up and Away for This Cloud Stock

 

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Article printed from InvestorPlace Media, http://investorplace.com/2013/12/trade-day-western-digital-wdc/.

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