12:16 PM EDT, 10/25/2024 (MT Newswires) -- Western Digital ( WDC ) has indicated a shift toward more mobile products, starting from a position of industry-leading profit margins, which is "good, but mix dependent," Morgan Stanley said in a note Friday.

In this context, the company performed well, with prices for similar products rising in September, according to Morgan Stanley. However, modest price declines are expected in December, with bits increasing in the mid-single-digit percentage range and NAND revenue seeing a slight increase, the analysts said.

Morgan Stanley said there's a very low chance that plans to separate the hard disk drive and NAND flash memory businesses into two separate companies by the March quarter will not happen. While the timeline could shift, senior management is committed to this plan, the analysts said.

For the December quarter, Morgan Stanley expects revenue of $4.319 billion and non-GAAP earnings per share of $1.92. For the full year 2025, the analysts now estimate revenue of $17.989 billion and EPS of $9.00, compared to previous estimates of $18.804 billion and $9.37.

Morgan Stanley raised its price target on Western Digital ( WDC ) to $100 from $94 while keeping its overweight rating.

Western Digital ( WDC ) shares were up more than 8% in recent trading.

Price: 72.03, Change: +5.71, Percent Change: +8.60