Needham & Company Reiterates a 'Strong Buy' on Seagate Technology (STX); Welcome to the New Norm...Gross Margins Still Above 30%

July 6, 2012 8:08 AM EDT Send to a Friend
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Price: $55.21 +2.53%

Rating Summary:
    14 Buy, 15 Hold, 2 Sell

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    Up: 24 | Down: 14 | New: 40
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Needham & Company reiterates a 'Strong Buy' on Seagate Technology (NASDAQ: STX) price target of $42.00.

Analyst, Richard Kugele, said, "STX’s preannouncement last night codifies what seems to have been largely already known by the buy side community, namely that STX reduced shipments in the quarter to match demand, and that an enterprise quality issue negatively impacted GM. Nevertheless, despite normalcy and macro headwinds, STX continues to maintain GM of more than 30% for the balance of the calendar year...welcome to the new normal."

Kugele raises FY12 EPS estimate from $6.56 to $6.68, but lowers FY13 from $8.91 to $8.84.

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 $25.08 yesterday.


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