Needham & Company Maintains a 'Strong Buy' on Seagate Technology (STX); Updating Estimates For End Of Quarter Checks

Needham & Company maintains a 'Strong Buy' on Seagate Technology (NASDAQ: STX) price target of $19.00 (lowered from $25).

Needham analyst says, "We maintain our positive stance on STX based on 1) anticipated improvement in industry fundamentals once Samsung and Hitachi transactions close; 2) maintaining the current dividend (today yielding 6.8%); and 3) delivering on leading areal density. While the demand environment continues to be volatile, as we see these three key elements remaining in place, we maintain our SB with a $19 target based on 10x C12 EPS of $1.89 (without Samsung)."

"Combining these recent data points we are adjusting F1Q to the low-end of guidance (was $2.9B and $0.29-0.33). We estimate F1Q at $2.85B/$0.29 vs. $2.9B/$0.32. For F12, we forecast $11.2B/$1.27 vs. $11.8B/$1.85. For F13, lowering to $11.8B/$2.44 vs. $12.6B/$2.85. Samsung should increase estimates in F3Q."

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 $10.72 yesterday.

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