Analyst Tristan Gerra from Robert W. Baird maintained a Buy rating on Seagate Tech and increased the price target to $188.00 from $120.00.
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Tristan Gerra has given his Buy rating due to a combination of factors that highlight Seagate Tech’s strong future prospects. The company is on a fast track to achieving gross margins exceeding 40% by fiscal year 2026, driven by a strategic focus on profitability rather than market share. This shift in fundamentals is not yet fully reflected in the stock price, offering potential upside.
Seagate’s transition to Heat-Assisted Magnetic Recording (HAMR) technology is a key driver for future growth, with expectations to capture significant market share. The technology is set to account for 40% of near-line Exabyte shipments by the end of the year, positioning the company well for future demand. Despite muted revenue guidance for the September quarter due to capacity diversion for HAMR qualification, demand remains robust, and Seagate’s strategic moves, including share buybacks, are expected to enhance shareholder value.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $160.00 price target.
Based on the recent corporate insider activity of 119 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of STX in relation to earlier this year.