Seagate price target raised, reinstated as ‘Top Pick’ at Morgan Stanley

Morgan Stanley analyst Erik Woodring raised the firm’s price target on Seagate (STX) to $140 from $99 and keeps an Overweight rating on the shares, which the analyst reinstated as his “Top Pick” after yesterday’s analyst day meeting. While the firm notes it e had previewed the event positively, management’s long-term financial model surpassed its expectations, guiding to stronger revenue growth, higher operating margins, and earlier share buybacks than the firm had anticipated, the analyst tells investors. The firm estimates this new guidance implies $19 of peak EPS by FY28 versus its prior $14 estimate, which would imply that shares, even after 27 points of outperformance this year, are trading at just less than 6-times peak earnings, the analyst added.