Timothy Arcuri, an analyst from UBS, maintained the Hold rating on Seagate Tech. The associated price target was lowered to $230.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Timothy Arcuri has given his Hold rating due to a combination of factors influencing Seagate Tech’s current market position and future prospects. While Seagate continues to perform well in a robust demand environment, with strong customer relationships and increasing margins, there are concerns about the sustainability of these conditions. The industry dynamics, particularly the high multiples being paid for stocks like Seagate and Western Digital, raise caution about potential overvaluation and the risk of double-ordering.
Additionally, the shift in the industry towards high-capacity eSSDs for nearline applications due to shorter lead times poses a challenge to traditional HDD demand. Although Seagate’s recent financial performance has been strong, with revenue and earnings exceeding expectations, the long-term outlook remains uncertain. The potential compression of price-to-earnings multiples and the temporary nature of market share gains from HAMR technology contribute to the cautious Hold rating, reflecting a balanced view of the company’s opportunities and risks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $240.00 price target.
Based on the recent corporate insider activity of 119 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of STX in relation to earlier this year.