Seagate Technology price target raised to $175 from $125 at Cantor Fitzgerald

Published 28/07/2025, 12:38
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Investing.com - Cantor Fitzgerald raised its price target on Seagate Technology (NASDAQ:STX) to $175.00 from $125.00 on Monday, while maintaining a Neutral rating on the data storage company’s stock. The stock, currently trading near $151, has shown remarkable momentum with a 77% gain year-to-date and is trading close to its 52-week high of $153.88.

The price target increase follows what the research firm described as a "strong Beat/Raise" performance driven by robust cloud demand and progress toward a projected $12 in calendar year 2026 earnings per share. According to InvestingPro data, the company’s financial health is rated as GOOD, with strong profit and price momentum scores.

Cantor Fitzgerald expects Seagate to continue its pattern of beating expectations and raising guidance, supported by strong Nearline demand and growing HAMR (Heat-Assisted Magnetic Recording) technology adoption.

The firm noted it anticipates a "disciplined view" on exabyte growth, with total addressable market expansion driven solely by technology transitions rather than price competition.

Cantor Fitzgerald believes the hard disk drive industry remains "ripe for continued re-rating" due to its structurally more profitable industry position and expanding margin profile, with the new $175 target representing approximately 15 times the potential CY26E EPS of $12.

In other recent news, Seagate Technology’s financial outlook and analyst ratings have been in the spotlight. Mizuho (NYSE:MFG) raised its price target for Seagate to $155 while maintaining an Outperform rating, aligning its revenue and earnings per share estimates with consensus figures of $2.40 billion and $2.40, respectively, for the June quarter. Meanwhile, Goldman Sachs initiated coverage on Seagate with a Buy rating and set a price target of $170, citing the company’s technological leadership in HAMR-based drives as a key factor for potential market share gains.

BofA Securities also showed optimism by increasing its price target for Seagate to $135 from $125, maintaining a Buy rating. This adjustment followed a positive meeting with Seagate’s CFO, where the firm’s medium and long-term goals were discussed, including advancements in areal density and cost management. Additionally, Seagate’s Analyst Day revealed mid-term financial targets, including a low-to-mid teens revenue compound annual growth rate from fiscal year 2025 to 2028, with gross margins projected at 40%.

Cantor Fitzgerald maintained a Neutral rating with a $125 price target, noting some investor confusion regarding growth projections. Seagate clarified its financial targets, emphasizing a low- to mid-teens growth CAGR compared to fiscal year 2025, with an updated EPS target for fiscal year 2028 estimated closer to $16.50. These developments highlight the varied analyst perspectives on Seagate’s strategic direction and financial performance.

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