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Brean Murray Carret & Co. Maintains a 'Buy/Focus List' on Seagate Technology (STX); Dinner With Management Reinforces Thesis

May 9, 2012 12:55 PM EDT Send to a Friend
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Price: $57.54 -1.32%

Rating Summary:
    13 Buy, 15 Hold, 2 Sell

Rating Trend: Up Up

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    Up: 21 | Down: 25 | New: 14
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Brean Murray Carret & Co. maintains a 'Buy/Focus List' on Seagate Technology (NASDAQ: STX) price target of $38.00.

Analyst, Ananda Baruah, said, "Last evening, we hosted a dinner with Seagate CFO Pat O'Malley and, if anything, came away feeling more strongly regarding our Buy rating on Focus List STX...There is an opportunity that CY13 gross margin is stronger that Street of mid-20% range...STX is adamant that OEM drive negotiations are just about price - and the reality is with two big drive vendors, OEM's may not have as much clout as historically...STX could have material cost tailwinds to CY13 gross margin...We believe the forces at play and STX's commentary suggest Jun Qtr GM & EPS upside is quite likely (we see June Qtr GM between 34.5% - 40%).

For an analyst ratings summary and ratings history on Seagate Technology click here. For more ratings news on Seagate Technology click here.

Shares of Seagate Technology closed at $30.41 yesterday.




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