Bank of America Securities analyst Wamsi Mohan reiterated a Buy rating on Seagate Tech (STX – Research Report) today and set a price target of $135.00.
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Wamsi Mohan has given his Buy rating due to a combination of factors that highlight Seagate Tech’s promising growth trajectory and strategic positioning. The company is confident in its Heat-Assisted Magnetic Recording (HAMR) technology rollout, which is expected to drive higher margins without the need for additional unit capacity investments. This technology shift is anticipated to result in a more profitable product mix, particularly as Seagate has already qualified major cloud service providers for its 30TB HAMR drives and plans to ramp up 40TB HAMR production by 2026.
Furthermore, Seagate’s ability to manage supply and demand effectively, especially in collaboration with its large customers, positions it well to handle potential market downturns. The company’s proactive approach in managing demand slowdowns and its commitment to returning a significant portion of free cash flow to shareholders further bolster its financial stability. With high-capacity hard disk drives (HDDs) consistently sold out, Seagate is poised for revenue growth and improved profitability, justifying the raised price objective to $135.
According to TipRanks, Mohan is a 5-star analyst with an average return of 10.9% and a 59.48% success rate. Mohan covers the Technology sector, focusing on stocks such as Apple, Seagate Tech, and International Business Machines.
In another report released on May 26, Citi also maintained a Buy rating on the stock with a $140.00 price target.
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