Analyst Krish Sankar of TD Cowen maintained a Buy rating on Seagate Tech, boosting the price target to $270.00.
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Krish Sankar has given his Buy rating due to a combination of factors that suggest Seagate Technology is poised for growth. The company is benefiting from a more predictable and profitable cycle in the HDD market, driven by tight supply, disciplined capital expenditure, and improvements in product mix, particularly with HAMR technology and cloud solutions. These factors contribute to a positive outlook for shipment growth and pricing stability, with expectations of significant growth in exabyte shipments and a potential increase in pricing.
Additionally, Seagate’s guidance for revenue and earnings per share slightly exceeds market expectations, indicating strong performance. The company’s strategic focus on cloud services, which now account for a substantial portion of its revenue, and its investment in expanding capacity further bolster its growth prospects. The anticipated ramp-up of HAMR technology and the lack of expected seasonality in the coming quarters support the thesis that Seagate is well-positioned for continued success, justifying the Buy rating.
In another report released yesterday, Robert W. Baird also maintained a Buy rating on the stock with a $270.00 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.