Shares of Western Digital fell more than 2 percent Wednesday after Jefferies lowered its price target on the company.
Jefferies cut its Western Digital estimates to $54 from $62.
Jefferies said it has concerns about Western Digital's "potentially eroding competitive position" and about the company's oversupply of products.
"The potential eventual entrance of a new domestic Chinese player creates elevated risks of oversupply," the firm said in a report of Western Digital.
Western Digital's stock has plunged more than 46 percent in the past year.
Western Digital's 12-month performance: