Analyst Krish Sankar from TD Cowen maintained a Buy rating on Seagate Tech (STX – Research Report) and keeping the price target at $135.00.
Krish Sankar’s rating is based on several positive developments for Seagate Tech. The company has shown strong visibility into cloud demand, with management indicating extended visibility from some cloud service providers into the first half of calendar year 2026. This level of visibility suggests a robust structural demand for hard disk drives in the cloud sector. Additionally, Seagate’s revenue and earnings per share guidance exceeded market expectations, indicating strong financial performance.
Another factor contributing to the Buy rating is Seagate’s strategic approach to navigating tariff impacts by potentially relocating manufacturing facilities and its ability to pass on higher prices to customers due to its significant market share. The company is also making progress with its Heat-Assisted Magnetic Recording (HAMR) technology, approaching the qualification of a second cloud service provider customer, which is expected to be accretive to margins. Furthermore, Seagate’s operational expenses are projected to decrease, contributing to a positive outlook for the company’s profitability.
In another report released yesterday, Robert W. Baird also maintained a Buy rating on the stock with a $120.00 price target.
Based on the recent corporate insider activity of 96 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of STX in relation to earlier this year.