Seagate price target raised to $235 from $155 at UBS

UBS analyst Timothy Arcuri raised the firm’s price target on Seagate (STX) to $235 from $155 and keeps a Neutral rating on the shares. September quarter results are expected to align with consensus, with revenue and EPS near Street estimates and limited upside potential given the absence of new unit production, the analyst tells investors in a research note. While extended AI infrastructure buildouts are supporting above-trend nearline demand into 2026, the outlook points to a potential cyclical downturn in 2027. Management is likely to emphasize improved visibility and progress in HAMR adoption, though growing head capacity across the industry may lead investors to compress EPS multiples even as earnings rise, shifting the recent positive narrative, UBS says.