Analyst Wamsi Mohan of Bank of America Securities reiterated a Buy rating on Seagate Tech (STX – Research Report), boosting the price target to $120.00.
Wamsi Mohan has given his Buy rating due to a combination of factors including Seagate Technology’s strong financial performance and promising future prospects. The company reported impressive third-quarter results, with revenue and earnings per share exceeding expectations despite supply chain challenges. This performance suggests that the hard disk drive (HDD) industry, and Seagate in particular, have potential for continued growth, and the current cycle has not yet peaked.
Additionally, Mohan anticipates further revenue increases in the fourth quarter and beyond, driven by the ramp-up of Heat-Assisted Magnetic Recording (HAMR) technology in the latter half of the year. The guidance for the fourth quarter also exceeds consensus estimates, highlighting strong demand and visibility from build-to-order (BTO) customers. The ongoing demand from cloud service providers and the transition to higher-capacity HAMR drives are expected to support revenue growth in the second half of 2025, reinforcing the Buy rating.
According to TipRanks, Mohan is a 5-star analyst with an average return of 8.3% and a 53.01% success rate. Mohan covers the Technology sector, focusing on stocks such as Apple, International Business Machines, and TE Connectivity.
In another report released yesterday, Robert W. Baird also maintained a Buy rating on the stock with a $120.00 price target.