Thoughts From The Road – WDC Edition

研报英文原文证据摘录

Thoughts From The Road – WDC Edition

May 26, 2026

VALUATION METHODOLOGY

Our target price is based on a price/earnings multiple. We assess future earnings growth, operating margins, free cash flow

generation and returns on capital employed when determining whether a company is deserving of higher or lower multiples

RISKS

1)SSD Displacement and NAND Cost Deflation: If NAND costs fall faster than expected relative to HDDs, it could trigger a significant

share shift. 2) Cloud Capex Moderation and Concentration: Slowdown in investments or cyclicality from a few dominant hyperscaler

customers would dampen nearline demand and revenue. 3) Supply Discipline Erodes: HDD vendors decide for right or wrong

reasons to add capacity. 4) Toshiba Re-Emergence: Toshiba advances technologically, enabling it to compete more aggressively

and pressuring market share. 5) Geographic Concentration: Significant portion of global HDD assembly takes place in Southeast

Asia. This concentration leaves the industry highly exposed to tariffs, natural disasters, and infrastructure disruptions

COMPANIES UNDER COVERAGE BY AUTHOR

Price Evercore ISI

Symbol Company Rating (2026-22-05) Target

AAPL Apple Inc Outperform $304.99 $365.00

ACN Accenture plc Outperform $177.87 $250.00

ANET Arista Networks, Inc. Outperform $148.59 $200.00

APH Amphenol Corporation Outperform $124.86 $180.00

CDW CDW Corporation Outperform $106.25 $160.00

CIEN Ciena Corporation In Line $587.23 $550.00

CRWV CoreWeave, Inc. Outperform $107.58 $150.00

CSCO Cisco Systems, Inc. Outperform $118.20 $150.00

Cognizant Technology Solutions

CTSH Corporation Outperform $52.32 $70.00

DELL Dell Technologies Inc Outperform $252.80 $270.00

FFIV F5, Inc. Outperform $383.70 $475.00

HPE Hewlett Packard Enterprise Co. Outperform $33.97 $40.00