It's time to offload shares of Western Digital as the memory industry faces a severe slowdown, according to Goldman Sachs.
Analyst Toshiya Hari downgraded the chip stock to sell from neutral in a note to clients Thursday, citing high inventory and slowing demand in the NAND flash memory business.
The stock tumbled nearly 6% before the bell Thursday.
Along with the downgrade, Hari trimmed estimates and cut the bank's price target on the stock to $31, implying more than 13% downside from Wednesday's close.
In the same note, Hari reiterated Goldman's buy rating on Micron Technology , citing favorable tailwinds in the dynamic access memory, or DRAM business, which creates chips to store data within memory cells.