Morgan Stanley upgraded Seagate Technology to Overweight from Equal Weight with a price target of $115, up from $73. The analyst says a cyclical recovery, technology leadership, and the potential for generative artificial intelligence-related demand means Seagate is entering a period of structurally stronger gross margins. The firm’s new bottom-up analysis shows the company’s earnings power 25%-30% greater than previously estimated. Morgan Stanley also believes generative AI will be a longer-term “rising tides lifts all boats” tailwind for storage.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
