Morgan Stanley calls hard disk drives, or HDDs, the “healthiest end market we cover” and believes that capacity growth plus relative pricing strength will drive margin upside compared to consensus for Seagate, leading to a September-end quarter beat and December-end quarter raise. The firm, which notes that its EPS estimates are now 7% and 10% ahead of consensus for the September and December quarters, respectively, maintains an Overweight rating and $133 price target on Seagate shares.
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