BofA raised the firm’s price target on Seagate (STX) to $165 from $145 and keeps a Buy rating on the shares. The Street is underestimating Seagate’s ability to step up profitability with areal density, the analyst tells investors in a research note. The firm believes Seagate can grow EB shipments at a low-20s compound annual growth rate in 2025-2028 while maintaining unit capacity flat, and at the same time, can absorb mid to high single digit cost per terabyte decline while growing revenue at a mid-to-low-teens CAGR from the fiscal 2025 base.
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