Auriga Maintains a 'Buy' on Seagate Technology (STX); Raising Estimates as All Trends Pointing Up on Margins

Auriga maintains a 'Buy' on Seagate Technology (NASDAQ: STX), PT upped $1 to $30.

Auriga analyst says, "We are raising our F1Q12 (Sept) and F12 (June) estimates further above consensus after our latest checks suggest very favorable pricing is now expected for the September quarter, which should lead to strong gross margin for Seagate in the back half of the calendar year. Longer term, we expect Seagate will be the big winner from ongoing industry consolidation, and believe investors continue to underestimate Seagate's free cash flow potential post merger."

"With higher prices and margins now expected, we are increasing our September quarter revenue to $2.99Bn from $2.93Bn (consensus at $2.82Bn), and increasing our September quarter pro-forma EPS estimate to $0.55 from $0.50 (comparable consensus at $0.46)."

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 $16.60 yesterday.

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