Seagate Tech’s Promising Growth: Buy Rating Backed by AI-Driven Demand and Strategic Initiatives

Mark Miller, an analyst from Benchmark Co., maintained the Buy rating on Seagate Tech (STX – Research Report). The associated price target was raised to $128.00.

Mark Miller has given his Buy rating due to a combination of factors that highlight Seagate Tech’s promising growth prospects. The company recently hosted an investor day where it emphasized its product roadmap and the significant growth opportunities in data storage, driven by the increasing demand from AI applications. With a projected mid-20% CAGR in data storage demand, Seagate is well-positioned to benefit from its cost-effective hard drive solutions, which hold a substantial cost advantage over flash memory. This advantage is expected to result in a low-to-mid teens revenue CAGR and robust non-GAAP gross margins of 40%.
Furthermore, Seagate’s strategic initiatives, including a $5 billion share buyback and the introduction of advanced HAMR drives, underscore its commitment to innovation and shareholder value. The firm’s leadership in HAMR drive technology, which offers cost and space efficiencies, is expected to drive significant adoption among major data centers. With increased visibility into customer demand and a strong pipeline of next-generation products, Seagate has raised its FY26 financial forecasts, leading to an increased target price from $120 to $128. These factors collectively support Mark Miller’s Buy rating for Seagate Tech’s stock.

In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $125.00 price target.