Western Digital Gets Price Target Boost as SanDisk Stake Sale Looms
Summary
Evercore ISI has lifted its price target on Western Digital, signalling increased confidence in the company’s post-separation strategy.
A potential sale of Western Digital’s remaining stake in SanDisk could act as a near-term catalyst for the stock.
The timing aligns with the one-year anniversary of the Western Digital–SanDisk separation, sharpening investor focus.
Evercore ISI has increased its price target on Western Digital to $230 from $190 while maintaining an Outperform rating. The upgrade reflects growing confidence in Western Digital’s strategic direction following its separation.
Analysts at Evercore ISI expect Western Digital to sell its remaining roughly 5% stake in SanDisk in the near term. This move is widely anticipated as the companies approach the one-year mark since their split in February 2025.
For investors, a SanDisk stake sale could unlock additional value and simplify Western Digital’s balance sheet. Cleaner corporate structures often appeal to institutional funds looking for clearer capital allocation stories.
The timing is important, as Western Digital has now had sufficient distance from the separation to outline its standalone strategy. Markets tend to reassess valuation once transitional uncertainty begins to fade.
Evercore ISI’s higher target suggests confidence that Western Digital can execute in a more focused operating model. That confidence is reinforced by expectations of capital discipline following the disposal of non-core holdings.
Western Digital’s stock has historically responded well to clarity around portfolio structure and cash generation. A confirmed SanDisk exit could reinforce the investment case at a moment when sentiment is already improving.
With the one-year separation milestone approaching, investor attention is sharpening around tangible actions rather than long-term promises. For Western Digital, the coming weeks could prove decisive in validating Evercore ISI’s bullish outlook.
