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Investing.com - Cantor Fitzgerald raised its price target on Seagate Technology (NASDAQ:STX) to $400.00 from $280.00 on Thursday, while maintaining an Overweight rating on the stock. Seagate shares currently trade at $275.77, approaching their 52-week high of $283.94, after surging 224.86% year-to-date.
The firm cited the hard disk drive (HDD) oligopoly dynamics and expectations that HDD demand will continue to exceed supply through 2026. Seagate plans to increase supply through technology transitions only, with no plans to increase unit capacity. As a prominent player in the Technology Hardware, Storage & Peripherals industry, Seagate has capitalized on this market position with 31.56% revenue growth over the last twelve months.
Cantor Fitzgerald noted that Seagate’s long-term agreements now extend through 2026 and into 2027, providing visibility for gross margin improvements as cost reductions continue in a high single-digit percentage environment. The company’s current gross profit margin stands at 37%, with 17 analysts having revised their earnings estimates upward for the upcoming period.
The firm highlighted Seagate’s HAMR technology ramp, which is expected to represent more than 70% of exabyte production by June 2027. Cantor believes Seagate is approximately two years ahead of competition in this technology.
Cantor Fitzgerald sees a path to $20-25 in earnings per share by fiscal year 2028, justifying the new price target based on a 21x multiple of potential calendar year 2028 EPS of $20+ discounted back one year. For comparison, Seagate’s current diluted EPS is $7.81, with analysts forecasting $11.79 for FY2026, trading at a P/E ratio of 35.8.InvestingPro data shows Seagate is trading near its Fair Value, with 16 additional ProTips available to subscribers. Get access to Seagate’s comprehensive Pro Research Report, part of the in-depth analysis available for 1,400+ US equities.
In other recent news, Seagate Technology has reported fiscal first-quarter 2026 results that exceeded analyst expectations, along with second-quarter guidance that surpassed consensus forecasts. The company has entered into exchange agreements for $500 million in principal amount of its 3.50% Exchangeable Senior Notes due 2028, with the consideration comprising approximately $503.4 million in cash and an undetermined number of Seagate shares. Benchmark has raised its price target for Seagate to $255, maintaining a Buy rating, citing strong data center sales as a key factor. Cantor Fitzgerald has also maintained its Overweight rating and a $280 price target, noting the company’s stronger-than-anticipated results and guidance driven by demand from Cloud customers and AI applications.
TD Cowen has increased its price target for Seagate to $270 from $175, reflecting a more optimistic outlook on the company’s growth potential. Bernstein SocGen Group reiterated an Outperform rating with a $275 price target, highlighting Seagate’s strong performance in revenue, margins, and earnings per share. The firm attributes the robust margins to supply discipline and strong demand conditions. These developments indicate a positive outlook from multiple analyst firms on Seagate’s financial health and growth trajectory.
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