Needham & Company Upgrades Seagate Technology (STX) to Strong Buy

Needham & Company upgraded Seagate Technology (NASDAQ: STX) from Buy to Strong Buy with a price target of $43.00 (from $39.00).

Analyst Richard Kugele commented, "In our view, a generally stable to improving demand environment is benefiting Seagate at the very moment it is well underway restructuring its capacity and OPEX model for the new world dominated by CSPs and high-capacity drives. We believe investors (including new 2% holder ValueAct) will be beneficiaries of these dynamics as they flow through the model. We increase our target to $43 from $39 based on 12x F17 EPS of $3.59. With the stock down ~7% (likely sell the news) and nearly 22% room to our new price target, we are upgrading to Strong Buy from Buy."

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 $37.97 yesterday.

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