Stifel bumps Nvidia stock target, sees attractive valuation
On Wednesday, Benchmark analysts reiterated their Buy rating on Seagate Technology (NASDAQ:STX) with a steadfast price target of $120.00. Seagate Technology recently reported financial results that exceeded expectations and indicated an optimistic outlook for the upcoming June quarter. The company overcame previous supply constraints, leading to a sequential sales dip of 7.3% but a significant year-over-year increase of 30%. According to InvestingPro data, the company’s current P/E ratio of 15.85 suggests attractive valuation levels, with analysis indicating the stock is currently undervalued. Forecasted sales growth for the June quarter is underpinned by robust demand, particularly for Nearline products, which are expected to sustain their momentum through fiscal year 2026.
The analysts anticipate improvements in profit margins and cash flow as 2025 unfolds. The company’s strong financial health is evidenced by its gross profit margin of 34% and return on assets of 20.4%. Despite potential concerns regarding tariffs, the impact on Seagate’s business is predicted to be minimal. Looking further ahead, Benchmark’s analysis suggests a 32% year-over-year growth in non-GAAP earnings to $10.52 per diluted share by 2026. For deeper insights into Seagate’s financial metrics and growth potential, InvestingPro subscribers have access to over 30 additional exclusive financial indicators and analyst recommendations.
Seagate’s performance has been buoyed by the strong demand in the storage solutions sector, with Nearline sales playing a crucial role in driving revenue. The company’s ability to rectify supply issues has set the stage for increased sales in the near term. As a prominent player in the Technology Hardware industry, Seagate has maintained dividend payments for 15 consecutive years, currently offering a 3.5% yield. Benchmark’s continued confidence in Seagate is reflected in the reaffirmed Buy rating and the $120 price target, which underscores their positive outlook on the company’s financial prospects.
In other recent news, Seagate Technology’s financial performance has drawn varied reactions from analysts. Cantor Fitzgerald raised its price target for Seagate to $110, maintaining a Neutral rating, following a better-than-expected March quarter and a positive outlook for June. The firm noted Seagate’s confidence in its 2025 projections, driven by demand from the Cloud sector and advancements in Heat-Assisted Magnetic Recording (HAMR) technology. Conversely, Mizuho (NYSE:MFG) adjusted its price target downward to $95, while retaining an Outperform rating, attributing the change to revised future financial expectations despite positive market positioning. Citi also lowered its target to $115 from $125, maintaining a Buy rating, accounting for global tax impacts and stable HDD demand. Meanwhile, Morgan Stanley (NYSE:MS) increased its price target to $138, with an Overweight rating, highlighting Seagate as a top pick in the IT Hardware sector due to sustainable HDD cycles and strong gross margins. These recent developments underscore the varied perspectives on Seagate’s strategic advancements and financial outlook.
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