Seagate Technology price target raised to $200 from $185 at Rosenblatt

Investing.com - Rosenblatt raised its price target on Seagate Technology (NASDAQ:STX) to $200 from $185 while maintaining a Buy rating on Wednesday. The new target represents potential upside for the $32.4 billion data storage company, which has already delivered an impressive 79% return year-to-date.

The firm cited Seagate’s slight earnings beat, though noted that guidance came in slightly below expectations. Rosenblatt highlighted several positive trends for the data storage company, including margin expansion to 33.8% and improvements in product mix. According to InvestingPro data, the company maintains a healthy financial profile with a "GOOD" overall health score.

Seagate is experiencing increasing exabytes shipped and average selling price per hard disk drive, according to Rosenblatt’s analysis. The firm also pointed to Seagate’s industry-leading HAMR (Heat-Assisted Magnetic Recording) drives, which are currently ramping up production.

Other favorable factors mentioned include order visibility extending into calendar year 2026, ongoing debt reduction efforts, and the resumption of share repurchases by the company.

Rosenblatt’s new $200 price target is based on a 17x multiple of its fiscal year 2027 non-GAAP earnings per share estimates, with the firm raising both its margin and EPS projections for Seagate.

In other recent news, Seagate Technology reported its earnings for the June quarter, posting revenue of $2.44 billion and earnings per share of $2.59. These figures exceeded the consensus estimates of $2.42 billion in revenue and $2.45 in earnings per share. Despite this positive performance, Seagate’s guidance for the upcoming quarter was slightly below analyst expectations, projecting revenue of $2.5 billion and earnings per share of $2.30. This guidance shortfall led to an 8% drop in Seagate’s share price, despite the company’s strong fourth-quarter results. Mizuho (NYSE:MFG), a financial services firm, responded to the earnings report by raising its price target for Seagate Technology from $155 to $160, maintaining an Outperform rating. The firm cited strong demand from the cloud sector as a reason for the increased price target. Seagate’s revenue for the fourth quarter marked a significant increase of 30% year-over-year, up from $1.89 billion in the same quarter last year. These developments reflect the dynamic environment in which Seagate is currently operating.

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