Bernstein SocGen Group Reiterates Outperform Rating on Seagate Technology (STX), Top Pick in storage

Bernstein SocGen Group analyst Mark Newman reiterated an Outperform rating and maintained a $370.00 per share price target on Seagate Technology (NASDAQ: STX).

The analyst commented: "In addition to SanDisk as our pick in memory, Seagate is our long-term pick in storage. Among NAND, DRAM and HDD segments, HDD has the lowest risk of capacity additions, which is supportive for longer term pricing and profitability. In highly concentrated markets such as HDD, incremental capacity additions tend to be disciplined: with few competitors, suppliers are more inclined to prioritize profitability and ASP rather than pursue aggressive market-share gains. STX has advantage over WDC from the more advanced HAMR ramp. HAMR will be the most important driver of areal density improvements, which then drives cost/GB and overall profitability. Moreover, the gap between Seagate and WDC’s qualification timing already suggests a two-year lead of Seagate over Western Digital, so we expect Seagate’s HAMR leadership to sustain in the near future. As a result, Seagate’s lead in HAMR will translate to greater margin improvements. We estimate 53.1% margin for STX and 45.3% margin for WDC in 2030E."

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 $318.44 yesterday.

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