Wamsi Mohan, an analyst from Bank of America Securities, reiterated the Buy rating on Seagate Tech. The associated price target was raised to $165.00.
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Wamsi Mohan has given his Buy rating due to a combination of factors that highlight Seagate Technology’s potential for significant growth. The company is expected to increase its exabyte shipments at a substantial compound annual growth rate while maintaining its unit capacity. This growth is supported by the demand from cloud services and the introduction of higher capacity HAMR hard drives, which are anticipated to enhance revenue and margins.
Additionally, Mohan notes that current market expectations underestimate Seagate’s profitability potential, particularly with the ramp-up of HAMR technology. The company’s ability to increase areal density is projected to drive higher profitability, with the potential for earnings per share to reach $15 by 2027. The report suggests that if the decline in the cost per terabyte is slower than anticipated, Seagate’s earnings could exceed expectations, further justifying the Buy rating.
In another report released today, Citi also maintained a Buy rating on the stock with a $170.00 price target.