In a report released on August 4, Aaron Rakers from Wells Fargo maintained a Hold rating on Seagate Tech, with a price target of $160.00.
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Aaron Rakers has given his Hold rating due to a combination of factors observed in Seagate Tech’s recent financial disclosures. The company’s gross margin for F2025 was reported at 35.8%, which was positively influenced by a favorable product mix and strategic pricing actions. Despite this, the absence of underutilization charges over the past four quarters, which previously impacted margins, suggests a stabilization rather than a significant improvement in operational efficiency.
Additionally, Seagate’s purchase obligations at the end of F2025 were approximately $1.3 billion, with the majority due within a year, indicating a substantial short-term financial commitment. The inventory levels also showed an increase in finished goods, which could imply potential challenges in demand forecasting or sales execution. Furthermore, while revenue grew significantly year-over-year, the concentration of revenue from a single customer accounting for about 10% of total revenue introduces a risk factor. These elements collectively contribute to a cautious outlook, justifying the Hold rating.
In another report released on July 30, Barclays also maintained a Hold rating on the stock with a $125.00 price target.
STX’s price has also changed dramatically for the past six months – from $94.510 to $154.810, which is a 63.80% increase.