Seagate price target raised to $80 from $67 at BofA

BofA raised the firm’s price target on Seagate to $80 from $67 and keeps a Buy rating on the shares after the company’s Q1 revenue was in-line with company’s pre-announcement and fiscal Q2 revenue guidance of $1.55B came in slightly below consensus, but showed quarter-over-quarter improvement in terms of revenue, gross margin and operating margin. The firm’s view is that capacity shipment trends are bottoming out, driven by U.S. Cloud customers, and a HAMR, or Heat Assisted Magnetic Recording, ramp in 2024 will start to be a competitive advantage. The firm also cites margin improvement and the fact that Seagate has no significant liquidity or balance sheet risk.