FBN Lifts TP on Seagate (STX) to $38 Amid Strong Prelim. Q1 Numbers

October 11, 2016 12:35 PM EDT
Get Alerts STX Hot Sheet
Price: $34.56 +0.17%

Rating Summary:
    8 Buy, 26 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 26 | Down: 29 | New: 38
Trade STX Now!
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.

FBN lifts its price target on Sector Perform-rated Seagate (Nasdaq: STX) from $33 to $38 following positive preliminary Q1 results released earlier Tuesday.

The firm commented today: This morning, STX preannounced FQ1/Sept. quarter results above expectations. Revenue is now expected to be ~$2.8B, above the prior $2.7B estimate, and NG GM% is expected to be ~29%, much better than prior guidance of 27% and above the 25.8% level in FQ4. The GM strength was driven primarily by better than expected demand for high-capacity enterprise drives. Recall that last quarter STX noted strength from cloud service providers (CSPs) for the first time in some time. We believe that CSP strength continues, with positive implications for STX’s enterprise and GM outlook as well. We are raising our go-forward GM% estimates from around 27% to over 28%. STX noted strong growth in cloud-based storage Exabyte capacity as its new high-capacity HDD products are gaining traction in the marketplace.

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

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst PT Change

Add Your Comment