Benchmark Upgrades Seagate Technology (STX) to Buy
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Benchmark upgraded Seagate Technology (NASDAQ: STX) from Hold to Buy with a price target of $45. The change follows strong preliminary Q1 results.
"Seagate preannounced upside results for the September quarter. Seagate now expects to report revenue of approximately $2.8 billion, and GAAP and non-GAAP gross margin of approximately 29%. The Company expects to report HDD exabyte shipments of approximately 67 exabytes, reflecting unit shipments of approximately 39 million and average capacity per drive of 1.7 terabytes. Seagate’s prior guidance for the September quarter was for sales of $2.7 billion and nonGAAP gross margins of 27%," noted analyst Mark Miller.
"Higher margins in conjunction with the 8.5% sequential increase in Exabyte shipments, versus the 5.6% sequential increase in unit shipments, indicates to us that Seagate continues to benefit from strength in its Nearline drive sales, as also seen last quarter," continued the analsyt.
Shares of Seagate Technology closed at $37.97 yesterday.
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