Seagate (STX) PT Raised to $50 at Craig-Hallum; Higher Conviction Dividend Can Be Maintained

September 7, 2016 9:41 AM EDT
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Price: $36.90 --0%

Rating Summary:
    8 Buy, 26 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Craig-Hallum analyst Christian Schwab reiterated a Buy rating and lifted his price target on Seagate Technology (NASDAQ: STX) to $50.00 (from $37.00), saying they have great conviction in the company's dividend.

Schwab commented, "We believe further positive surprises are likely at Seagate given the company’s strategic decision to focus on shipping 1TB and greater drives and reduce its manufacturing footprint which we believe will lead to more stable earnings and cash flow generation."

The analyst highlighted cuts in manufacturing capacity over the next few quarters and accelerating the utilization of its own heads and media facilities. In addition, the company will be refreshing most of its high volume capacity products with lower cost designs.

He added, "Given our increased conviction in the company’s ability to support its $2.52/share dividend we are raising our price target to $50, based on a 5% dividend yield."

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 $34.47 yesterday.

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