Western Digital (WDC) is confident in achieving its new three- to five-year growth targets, driven by deeper customer engagement and long-term hyperscale supply agreements that enhance visibility into demand and pricing, BofA Securities said in a Tuesday note.

Management forecasts a mid-20% compound annual growth rate in nearline exabyte shipments, with overall company revenue expected to grow more than 20% annually over the next several years, the analysts said.

BofA increased its 2027 revenue and earnings-per-share forecasts to $15.6 billion and $13.51, respectively. Analysts surveyed by FactSet expect revenue of $15.79 billion and GAAP EPS of $13.39.

The firm maintained its buy rating on the stock and raised its price target to $375 from $345.

Shares of the company were down over 8% in recent trading.

Price: 267.74, Change: -18.25, Percent Change: -6.38