Needham & Company Maintains a 'Strong Buy' on Seagate Technology (STX) on Solid Underlying Fundamentals; However Lowering PT & Estimate

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Needham & Company maintains a 'Strong Buy' on Seagate Technology (NASDAQ: STX) price target lowered from $52 to $42.

Analyst, Richard Kugele, said, "While a softer TAM for June (and potentially the balance of 2012) is frustrating, we believe that the stocks of both STX and WDC have more than accounted for this reduction in demand (with more than $5B in lost market cap just since May 16th vs. $700M in less sales). Once again trading meaningfully below 2x NTM EV/EBITDA, we would be buyers on this weakness and ahead of the likely upbeat analyst days in September."

Needham lowers FY12 EPS estimate from $7.07 to $6.56 and FY13 from $10.63 to $8.91.

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 $23.67 yesterday, with a 52 week range of $9.05-$32.55.

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