Wells Fargo notes that on the heels of positive HDD demand/pricing comments from Western Digital (WDC) this morning, Seagate (STX) also provided confidence in September-end quarter HDD trends and gave a positive guidance update, stating that it now expects to be in the high-end of its fiscal Q1 non-GAAP EPS guidance range of $1.20-$1.60 driven by better-than-expected mix and pricing. The firm also thinks Seagate’s comments suggest that the company’s ongoing heat-assisted magnetic recording, or HAMR, qualification at a key cloud customer, believed to be Google (GOOGL), could push into the December quarter versus previously expecting completion in the September quarter, the analyst tells investors. Wells has an Equal Weight rating and $120 price target on Seagate shares.
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