In a report released today, Erik Woodring from Morgan Stanley maintained a Buy rating on Seagate Tech (STX – Research Report), with a price target of $99.00.
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Erik Woodring has given his Buy rating due to a combination of factors that suggest Seagate Technology is poised for further growth. One of the key elements is the anticipation of positive announcements at the upcoming Analyst Day, including the qualification of a second customer for their HAMR technology, which could enhance the company’s market position. Additionally, the expected details on the HAMR capacity ramp and a new financial model projecting peak earnings per share of approximately $14, indicate a strong potential for stock appreciation.
Furthermore, despite being close to all-time highs, Seagate’s stock is still seen as having room for outperformance, particularly given the ongoing upcycle in the nearline HDD market. The stock’s significant recovery from its April lows and the potential for a 50% upside to a bull case valuation of $154 further support the Buy rating. While there are skeptics in the market, Woodring believes that if Seagate meets expectations, it will unlock substantial value for investors.
According to TipRanks, Woodring is a 3-star analyst with an average return of 2.4% and a 55.98% success rate. Woodring covers the Technology sector, focusing on stocks such as Apple, Seagate Tech, and Dell Technologies.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $120.00 price target.
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