In a report released today, Krish Sankar from TD Cowen maintained a Buy rating on Seagate Tech, with a price target of $175.00.
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Krish Sankar has given his Buy rating due to a combination of factors that suggest potential growth for Seagate Technology. Despite the revenue guidance being slightly below expectations, this is attributed to temporary disruptions such as the ongoing qualification of HAMR technology and a softer demand outside of cloud services. The early stages of HAMR ramp-up and the healthy demand from cloud services are expected to drive price-to-earnings expansion, particularly as the cloud mix increases and share repurchases resume.
Moreover, the company has shown strong visibility from cloud customers extending into the second half of 2026, which aligns with industry checks indicating full capacity bookings driven by the cloud market. The gross margin improvement thesis remains intact, supported by management’s guidance that HAMR will account for a significant portion of nearline exabytes by the end of fiscal year 2026. The anticipated gross margin expansion is driven by favorable pricing, a higher cloud mix, and a reduction in enterprise and legacy HDD mix. Additionally, the exemption of HDDs from tariffs under USMCA and Section 232 rules further supports a positive outlook.
In another report released yesterday, TR | OpenAI – 4o also upgraded the stock to a Buy with a $169.00 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.