Seagate price target lowered to $69 from $72 at Mizuho

Mizuho lowered the firm’s price target on Seagate to $69 from $72 and keeps a Buy rating on the shares. The company “continues to execute well” in lowering in-house inventories, but the firm believes Cloud/Enterprise nearline HDD is still soft in the June quarter and thinks a combination of slow Enterprise/Cloud demand recovery, AI spending exhausting Compute/Storage budgets and a slower China recovery all imply a “muted” sales and gross margin recovery into the June and September quarters.