An analyst is optimistic about a rebound at Lake Forest-based disk drive maker Western Digital Corp., but not before spring when the sector starts to stabilize.
Needham & Co. analyst Richard Kugele cut his rating on Western Digital from “strong buy” to “buy” based an oversupply of drives for the next few months and weak demand from PC makers.
Western Digital’s shares were down about 4% at close of trading but were largely flat in late morning New York trading with a market value of $3.9 billion.
The company is the No. 2 maker of disk drives for computers and consumer electronics, after Scotts Valley-based Seagate Technology LLC.
Production cuts by Western Digital, Seagate and others could wind up boosting the company’s stock, Kugele said. But that’s not likely to happen before March or April, he said.
Shares of Western Digital are down about 40% in the past year.
The company and other drive makers have seen an oversupply of drives and falling prices as demand from PC and consumer electronics makers and consumers has slipped.
