The Western Digital logo is displayed on an external hard drive.
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Investors should sell Western Digital shares due to the secular decline of hard drives and the risk of flash-memory oversupply, according to Goldman Sachs, which lowered its rating on company to sell from neutral.
"To the extent the stock trades higher on short-term events, we would use it as an opportunity to sell the stock given risks that we believe could pressure WD's business in the next few years," analyst Mark Delaney wrote in a note to clients Tuesday. "We expect HDD [hard disk drives] sales to decline secularly."
