Morgan Stanley ups Seagate price target, sees pullback as buying opportunity

Morgan Stanley raised the firm’s price target on Seagate (STX) to $168 from $167 and keeps an Overweight rating on the shares. June quarter results were “modestly better than expected” and the September quarter guidance was “in-line with our expectations but a hair short of Consensus,” says the analyst, who attributes the after-hours weakness in the stock to “a minor expectations miss for a crowded long.” However, HDD demand outpacing supply, visibility extending into the second half of calendar 2026, better pricing, stronger gross margins and buybacks restarting “all support our structural bull thesis and higher EPS post-earnings,” adds the analyst, who reiterates Seagate as a “Top Pick” and views the post-earnings weakness as a buying opportunity.