Shares of data storage company, Seagate Technology Holdings (NASDAQ: STX) slipped in morning trading on Friday after Morgan Stanley analyst Erik Woodring downgraded the stock to a Hold from a Buy and slashed the price target to $60, implying an upside potential of 7.1% at current levels.
The analyst downgraded the stock citing a longer-than-expected recovery for the company after its weaker-than-expected fiscal Q3 results. Woodring commented, “STX’s more cautious commentary suggests the [hard-disk drive market] recovery has been pushed out 2+ qtrs, [with visibility and timing] of recovery more limited. As a result, we believe path to outperformance has also been pushed out, with risk more elevated [near-term].”
Analysts are cautiously optimistic about STX stock with a Moderate Buy consensus rating based on 11 Buys, 10 Holds, and three Sells.