TD Cowen analyst Krish Sankar has maintained their bullish stance on STX stock, giving a Buy rating yesterday.
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Krish Sankar has given his Buy rating due to a combination of factors that reflect Seagate Tech’s strategic positioning and market dynamics. The company is perceived to be making prudent decisions regarding capacity expansion, focusing on a 25% exabyte growth without increasing unit production. This approach is expected to support long-term pricing stability and demand.
Additionally, Seagate’s competitive edge in HAMR technology is highlighted, with expectations that it will maintain a lead in drive capacity compared to peers, potentially enhancing its pricing power. The company’s discipline in managing the cyclical nature of its business by controlling capacity and focusing on pricing is seen as a positive strategy. This, coupled with the potential for high gross margins and earnings power, underpins the Buy rating.
In another report released yesterday, Loop Capital Markets also maintained a Buy rating on the stock with a $465.00 price target.