Western Digital Corporation (WDC)

[FISH21049]

Purchase of Toshiba Chip Unit Would Be Icing on the Cake for Western Digital, Guggenheim Says

https://finance.yahoo.com/m/77e33df3-329d-33e5-b2fa-674b9e2c0399/ss_purchase-of-toshiba-chip-unit.html

Western Digital's (WDC) bid for Toshiba's (TOSYY) coveted chip unit is all "upside" for the company and is not necessary for the company to continue its upward trajectory, analysts at Guggenheim wrote in a bullish note Tuesday.

The firm reiterated its "buy" rating and $125 price target on the data storage device maker. Despite this view, the firm believes that the purchase could be accretive to the company's EPS by over $2 per share in the near-term and over $5 per share after accounting for $1 billion in overlapping synergies.

Western Digital shares were up 99 cents, or 1.14%, to $87.63 in premarket trading Tuesday.