Seagate downgraded to Equal Weight from Overweight at Barclays

Barclays analyst Tom O’Malley downgraded Seagate to Equal Weight from Overweight with an unchanged price target of $65. The nearline recovery continues to take longer than expected, with Q1 of 2024 now a “best case scenario for a material unit uptick,” the analyst tells investors in a research note. The firm says the setup for the hard disk drive group “is complex,” as companies are looking to be more aggressive on pricing, which is a long term positive. It cites the longer than expected recovery and the stock’s recent rally for the downgrade.