Seagate price target raised to $240 from $160 at Wells Fargo

Wells Fargo raised the firm’s price target on Seagate (STX) to $240 from $160 and keeps an Equal Weight rating on the shares. The firm increases its estimates to reflect increased structural/sustainable nearline HDD demand; higher gross margin estimates. Seagate’s path to 40%-plus gross margin with 50%-plus incremental gross margin at $2.6B/quarter driving investor sentiment to focus on path to 45%-plus, Wells notes.