Seagate price target lowered to $70 from $72 at TD Cowen

TD Cowen lowered the firm’s price target on Seagate to $70 from $72 and keeps an Outperform rating on the shares. The analyst said the $300M settlement with BIS is a positive as it removes an overhang. The dividend looks safe unless demand further deteriorates from here. A Covenant breach is also less likely assuming a cyclical recovery later this year and management can optimize the portfolio. Eventually the lean inventory levels should allow Seagate to capitalize on a recovery in cloud demand.