Western Digital Corp is Bringing Content to a TV Near You

Updated on

By Carly Forster 

Wish you can have content from your computer on your television screen? Western Digital (WDC) has created a digital media player that does just that.

Western Digital in the News

Western Digital Corp (NASDAQ:WDC) recently announced they would be launching their WD TV Personal Edition Media Player at Rs. 7,999, a digital media player that connects to a television via an HDMI cable, in India in August. The digital media player player is meant to bring content from a computer back to the television screen. The WD TV Personal Edition Media has streaming apps such as YouTube, Spotify, Vudu, Slingbox, Aol HD, Hulu Plus, and many more.

A Financial Experts Opinion

On June 6, BMO Capital analyst Keith Bachman recommended to BUY Western Digital Corp (NASDAQ:WDC) based on PC strength. He reasoned that motherboard shipment trends were better in the month of May than he originally predicted. He forecasts a 6% increase in shipments for this month, exceeding the average 5% increase in the second quarter for the last 3 years.

Keith Bachman’s Past Recommendations

Bachman has a history of making recommendations for tech related companies, including Apple (AAPL) and NetApp (NTAP). These recommendations have helped him earn a +7.7% average return on all stocks and a 58% success rate of recommendations.

Bachman placed an outperform rating on Apple Inc. (NASDAQ:AAPL) on April 24 of this year. He raised his price target for the stock from $565.00 to $610.00, reasoning “We are going to the high-end of our target multiple range, since we think the wearable category will be introduced before year-end…We believe catalysts include a new large screen iPhone, wearable category, and (longer-term) more services, including payments.” The price has gone up from $564.61 to $645.57 since Bachman’s recommendation, helping him earn a +5.7% average return on the stock.

In addition to his recommendation of the technology giant, on May 22 Bachman reiterated a Market Perform rating for NetApp Inc. (NASDAQ:NTAP) and cut his price target from $39.00 to $38.00. He explained, “Expectations were extremely low heading into this event. On the positive side, margins were very strong and NTAP raised both its buyback targets and dividend payouts. In contrast, FCF generation, at 19% of revenue, was below past year’s level in the mid-20%.” This recommendation has earned Bachman a +9.0% average return on the stock.

However, Bachman has not always been successful with his recommendations. On October 3, 2012, he gave Xyratex (XRTX), a leading data storage technology company, a Market Perform rating and cut his price target from $12.00 to $7.50. He felt that Xyratex Ltd. (NASDAQ:XRTX) has been a continuously irregular proxy for NetApp. Bachman noted, “We think the difference between XRTX’s storage revenue outlook and our forecast for NTAP’s product revenue growth of 10% q/q is due in part to a mix shift from NetApp Inc. (NASDAQ:NTAP)’s 3000 to the 2000 series, which Xyratex Ltd. (NASDAQ:XRTX) does not support.” Bachman has earned a -6.5% average return on this stock.

Will you be trusting Bachman’s latest recommendation based on his prior performance history?

Carly Forster writes about stock market news. She can be reached at [email protected]

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