Analyst Wamsi Mohan from Bank of America Securities reiterated a Buy rating on Seagate Tech and increased the price target to $320.00 from $275.00.
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Wamsi Mohan has given his Buy rating due to a combination of factors that indicate a positive outlook for Seagate Technology. The hard disk drive (HDD) industry is experiencing a favorable shift with improved supply and demand balance, supported by build-to-order contracts that span multiple quarters. Seagate is operating at near full capacity and is poised to meet the growing demand for exabytes with its current resources, focusing on transitioning customers to higher capacity HAMR technology.
Additionally, Seagate’s strong position in the Chinese market, particularly in the cloud sector, and its commitment to returning a substantial portion of free cash flow to shareholders through dividends and buybacks, further bolster its investment appeal. The company’s management sees low risk of inventory build-up, as any additional supply is quickly absorbed by the market. These factors, along with the expectation of revenue and margin improvements, have led to an increased price objective and a reaffirmed Buy rating.
In another report released on November 17, Bernstein also assigned a Buy rating to the stock with a $370.00 price target.