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.
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