Western Digital, Kioxia Holdings Advance Merger Talks

Western Digital stock is already up more than 20% in 2023

Jake Scott

Deputy Editor

Jan 23, 2023 at 8:45 AM

Western Digital Corp (NASDAQ:WDC) is advancing its merger talks with Japan's Kioxia Holdings Corp, per a report from Bloomberg News. The proposed combined entity would trade in the U.S. and become a major competitor of Samsung Electronics in the NAND flash market.

Before the bell, WDC was last seen 4% higher. Should these premarket gains hold, the shares will open at their highest level since Sept. 13. Fresh off its fourth-straight weekly win -- its longest streak in a year -- Western Digital stock now sports a 21.9% year-to-date lead.

There's room for analysts' pessimism to unwind, too, which could boost the equity. Coming into today, eight brokerages rated WDC a "buy" or better, though nine recommended a "hold" or worse. Meanwhile, the 12-month consensus price target of $44.01 is a roughly 10% premium to the stock's premarket levels.

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