Seagate Tech, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Wamsi Mohan from Bank of America Securities reiterated a Buy rating on the stock and has a $450.00 price target.
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Wamsi Mohan has given his Buy rating due to a combination of factors that signal both near‑term strength and longer‑term upside for Seagate Technology. He highlights that the company delivered revenue and EPS results above expectations and issued guidance that surpasses both Bank of America and consensus forecasts, supported by stronger‑than‑anticipated gross and operating margins. Mohan also emphasizes management’s confidence in ramping higher‑capacity HAMR drives, with a targeted crossover to 50% of Nearline exabyte shipments in the second half of calendar 2026, which he views as a key driver of future growth. In his view, Seagate is positioned to benefit from robust AI and datacenter demand, with tight supply-demand dynamics enhancing pricing power and supporting sustained margin expansion.
At the same time, Mohan points to meaningful operating leverage, noting very strong incremental gross margins in recent quarters and additional profitability levers that have yet to be fully realized, including lower bill‑of‑materials costs as internally sourced HAMR components ramp. He also expects that as long‑term agreements are renewed, Seagate will be able to secure higher price per terabyte, further supporting earnings growth. While he acknowledges dilution from convertible securities, he frames it against substantial upside potential in the stock. Based on improved revenue and EPS estimates and a constructive view on secular cloud and AI storage demand, he raises his price objective to $450, maintaining a Buy recommendation.
Mohan covers the Technology sector, focusing on stocks such as HP, Apple, and Dell Technologies. According to TipRanks, Mohan has an average return of 25.1% and a 62.37% success rate on recommended stocks.
In another report released today, TipRanks – Google also reiterated a Buy rating on the stock with a $407.00 price target.