Seagate Technology (STX) is receiving fresh attention from Wall Street ahead of its Q2 earnings report scheduled for January 27. Top-rated analysts at Morgan Stanley and Rosenblatt have raised their price targets on STX stock, citing higher demand for hard disk drives, stabilizing pricing, and a potential recovery in enterprise storage spending. Year-to-date, STX stock has gained 26%.
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Seagate designs and manufactures data storage products and is best known for its hard disk drives and enterprise storage systems.
Morgan Stanley Sees Revenue Beat
Morgan Stanley’s five-star-rated analyst Eirk Woodring raised STX price target to $372 from $337 and reiterated a Buy rating. He expects Seagate to slightly beat revenue estimates in the December quarter and deliver stronger-than-expected guidance for the March quarter. The firm also sees upside from higher gross margins, faster share buybacks, and better control over operating expenses, which could drive positive revisions to earnings estimates.
Woodring’s upbeat outlook is based on continued strong demand for hard disk drives (HDDs), slightly better enterprise shipments, a favorable shift toward higher-capacity drives, and solid pricing trends.
Rosenblatt Lifts STX’s Price Target to $370
Rosenblatt’s top-rated analyst Kevin Cassidy lifted the STX price target to $370 from $270 and maintained a Buy rating on the stock. He said strong demand for Seagate’s highest-capacity drives across all markets is helping the company lower the cost per bit for customers while still raising hard disk drive prices. Cassidy also remains positive on Seagate’s HAMR (Heat-Assisted Magnetic Recording) technology, noting that it allows higher storage density and reduces costs, supporting long-term growth.
Is STX a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on STX stock based on 15 Buys and four Holds assigned in the past three months. Meanwhile, Seagate’s average stock price target of $352.33 per share is 1.67% above the current share price.
