Bernstein analyst Mark Newman has maintained their bullish stance on STX stock, giving a Buy rating today.
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Forget margin or options. Here's how the pros trade STXMark Newman’s rating is based on Seagate Tech’s impressive financial performance and strategic management decisions. The company reported strong earnings for the first quarter of fiscal year 2026, surpassing expectations in revenue, margins, and earnings per share. Despite some concerns regarding free cash flow returns and share count, Seagate reaffirmed its commitment to shareholder returns, indicating potential increases in share buybacks to address dilution issues.
Furthermore, Seagate’s management has maintained a disciplined approach to supply, which is expected to sustain strong average selling prices and margin growth. The demand for Seagate’s products is robust, with significant commitments extending through the end of 2026. The company’s advancements in HAMR technology are on track, contributing to cost reductions and margin improvements. These factors, combined with a favorable valuation of the company’s future earnings, underpin Newman’s Buy rating for Seagate Tech.
In another report released today, Citi also maintained a Buy rating on the stock with a $275.00 price target.
STX’s price has also changed dramatically for the past six months – from $81.600 to $265.620, which is a 225.51% increase.