Needham & Company Reiterates a 'Strong Buy' on Seagate Technology (STX); Increasing Estimates Meaningfully

Needham & Company reiterates a 'Strong Buy' on Seagate Technology (NASDAQ: STX) price target raised from $22 to $35.

Needham analyst says, "While perhaps not the last man standing in the industry today, Seagate is certainly the strongest. In our view, the uncharted territory that STX finds itself will be manifested in some of the most impressive margin and earnings quarters in HDD history. We expect this dynamic to continue for the next 12 months+ given the lead times of recovery equipment."

"We are adjusting estimates meaningfully. For F2Q, we see $2.7B and $0.52, vs. our $2.67B and $0.28. F12 becomes $13.5B and $3.50, vs. $12.2B and $2.20. Extrapolating out to F13, we see $16.7B and $5.84, up from $14.7B and $3.75. We note a higher degree of variability in the farther out estimates than normal, but directionally we feel strongly we are correct."

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 $17.29 yesterday.

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