Wedbush Sees Everyone Winning if Seagate (STX) Buys Samsung’s Hard Disk Drive Unit

Wedbush is maintaining its Neutral rating on shares of Seagate Technology (NASDAQ: STX), but is raising its price target from $17 to $20 as its sees Seagate buying Samsung's Hard Disk Drive unit as a win for both the industry and the company.

The firm reports that STX reported its March quarter revenue near the top end of guidance, but missed its bottom line due to an increased opex and higher taxes.

If the deal goes through by the end of 2011, Wedbush anticipates that STX could generate $2.60 in earnings for FY12, which well above its current estimate of $2.13.

For more ratings news on Seagate Technology click here and for the rating history of Seagate Technology click here.

Shares of Seagate Technology closed at $17.93 yesterday.

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