Seagate price target raised to $500 from $400 at Cantor Fitzgerald

Cantor Fitzgerald analyst C.J. Muse raised the firm’s price target on Seagate (STX) to $500 from $400 and keeps an Overweight rating on the shares. Seagate delivered a strong beat and raise driven by sharply higher gross margins, reflecting tight HDD supply, favorable pricing, and ongoing cost reductions that are accelerating margin expansion, the analyst tells investors in a research note. The improving pricing environment and rising margins underpin a rapidly strengthening free cash flow outlook, supporting debt reduction, dividend growth, and increased share repurchases, Cantor says.