Mizuho raises Seagate Technology stock price target to $160 on cloud demand

Published 30/07/2025, 12:54
© Shutterstock

Investing.com - Mizuho (NYSE:MFG) raised its price target on Seagate Technology (NASDAQ:STX) to $160.00 from $155.00 on Wednesday, while maintaining its Outperform rating following the company’s June quarter earnings report. The stock, currently trading near its 52-week high of $155.52, has delivered an impressive 79% return year-to-date, according to InvestingPro data.

Seagate reported June quarter revenue of $2.44 billion and earnings per share of $2.59, exceeding consensus estimates of $2.42 billion and $2.45, respectively. The company provided in-line guidance for the September quarter, projecting revenue of $2.5 billion and earnings per share of $2.30. InvestingPro analysis indicates the company is fairly valued at current levels, with analysts maintaining price targets ranging from $68 to $200.

The storage manufacturer demonstrated strong nearline cloud demand, with exabytes shipped increasing 14% quarter-over-quarter and 52% year-over-year in the June quarter, with strength expected to continue in the September quarter.

Mizuho highlighted that Seagate’s gross margins are tracking toward the company’s 40% target, with the September quarter estimated to improve approximately 80 basis points sequentially due to HAMR technology mix, strong pricing, and cost per terabyte improvements.

The firm noted that Seagate’s HAMR technology deployment remains on track with three customers ramping up, with mix expected to reach approximately 40% by the end of fiscal 2026 and over 50% by mid-fiscal 2027, while Mozaic4 will start with 40TB drives, delivering over 30% capacity improvement on flat bill of materials.

In other recent news, Seagate Technology Holdings plc reported its fourth-quarter earnings, revealing better-than-expected results. The company posted adjusted earnings per share of $2.59, surpassing the analyst estimate of $2.44. Revenue for the quarter reached $2.44 billion, slightly above the consensus estimate of $2.42 billion and marking a 30% increase from $1.89 billion in the same quarter last year. Despite these positive figures, Seagate’s guidance for the current quarter fell short of analyst expectations. This shortfall in guidance has been a focal point for investors and analysts alike. There have been no recent updates regarding any mergers or acquisitions involving Seagate. Additionally, there have been no reported analyst upgrades or downgrades for the company at this time. Investors continue to monitor Seagate’s developments closely, given these recent financial disclosures.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.