Shares of Western Digital Corp. WDC, -4.55% are down 2.4% in premarket trading Wednesday after Cowen & Co. analyst Karl Ackerman downgraded the stock to market perform from ourperform. "We now expect WDC's NAND ASPs [average selling prices] should remain weaker and longer in duration than the industry and what is contemplated by investors," wrote Ackerman, who lowered his price target to $70 from $100. "Moreover, we worry that WDC's efforts to scale back incremental NAND wafer adds to support pricing is not without significant risk." Shares are down 22% over the past 12 months, while the S&P 500 SPX, -1.19% has gained 15% and the PHLX Semiconductor Index SOX, -2.14% has risen 23%.
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