Banc of America said, "Western Digital has the best-cost structure in the face of industry struggling to find ways to make money. We don't see an end to pricing issues, and therefore believe Western Digital's margins will continue to face pressure."
Banc of America rates Western Digital peers Seagate Technology and Maxtorboth at "neutral" with respective price targets of $12 and $4.70. In fact, in its enterprise hardware coverage, Banc of America's least favorite is Seagate. The firm's top pick is Dell, rated at "buy" with a price target of $40.