Citi analyst Asiya Merchant initiated coverage of Seagate with a Buy rating and $110 price target. The analyst expects a clyclical recovery in the storage market. Following several quarters of storage digestion, capex cuts and workforce reductions, the storage media industry dynamics should improve from here with the return of pent-up storage demand led by hyperscalers, the analyst tells investors in a research note. Citi’s industry checks suggest a sustained hard disk drive cyclical recovery from enterprise and hyperscalers, which it says should enable Seagate to sustain higher revenue and earnings growth ahead.
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