Top-ranked analyst: Buy Western Digital
One of the best analysts on Wall Street told clients to buy Western Digita l because the shares have an extremely cheap valuation and investors are underestimating the staying power of hard-disk drives. Hard drives "will not be completely displaced by SSDs (flash memory solid-state drives) over the next decade," Barclays' Mark Moskowitz wrote in a note to clients Wednesday. Western Digital's "valuation is too low, and multiples can increase longer term," the analyst added. Moskowitz's picks have a 15 percent one-year average return, according to analyst ranking service TipRanks , placing him in the top 3 percent of all Wall Street analysts covering any industry. The analyst upgraded Western Digital to overweight from equal weight and raised his price target from $57 to $60, representing 42 percent upside from Tuesday's close. Moskowitz said hard drives have a stronger competitive position in corporate data centers versus SSDs. He prdicted that SSDs will be 60 to 65 percent of overall PC units in seven to 10 years, but only 30 to 35 percent of the enterprise business. Read More 3 ETFs to buy in May before you sell and go away Western Digital trades at 5.5 times 2017 earnings, well below other highly leveraged tech companies, according to Barclays. "We believe that as WD delivers 3D NAND products and reduces its debt load, its P/E and EV/EBITDA multiples should be able to increase 4-6 turns and 2-3 turns, respectively," the report said. —CNBC's Michael Bloom contributed to this story.

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