Robert W. Baird analyst Tristan Gerra has maintained their bullish stance on STX stock, giving a Buy rating on April 25.
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Tristan Gerra has given his Buy rating due to a combination of factors that highlight Seagate Tech’s strong market position and financial health. The company is experiencing robust demand, particularly from hyperscale customers, with demand outstripping supply in the nearline segment. This high demand visibility, coupled with Seagate’s ability to manage supply through higher-density drives rather than expanding capacity, positions the company well for continued growth.
Furthermore, Seagate’s financial performance is strong, with ongoing gross and operating margin expansion. The company has achieved eight consecutive quarters of gross margin growth, and pricing trends remain favorable. Additionally, Seagate is focused on reducing debt levels, which will allow it to prioritize dividends and share buybacks in the future. These factors, combined with the momentum in HAMR technology qualification, support the positive outlook and Buy rating from Tristan Gerra.
According to TipRanks, Gerra is a 3-star analyst with an average return of 2.0% and a 43.40% success rate. Gerra covers the Technology sector, focusing on stocks such as Intel, ON Semiconductor, and Semtech.
In another report released on April 25, Citi also maintained a Buy rating on the stock with a $90.00 price target.