Brean Murray Carret Raises Price Targets on Seagate (STX), Western Dig (WDC), Remains Bullish Following New Guidance

Following updated guidance from management at Seagate Tech. (NYSE: STX), Brean Murray Carret & Co. is raising its price target on the shares from $18 to $23.

The company’s new guidance calls for earnings of $0.65-$0.70 for the December quarter and roughly $1 for the March quarter, well above the Street’s estimates of $0.47 and $0.78 for the two quarters. Management also reported that revenues are expected to be $2.8 billion and $3.75 billion for the two years, higher than the Street’s estimates of $2.64 billion and $3.24 billion. The firm notes the upside is due to stronger pricing which will likely drive stronger gross margins.

The firm believes STX could generate $4-$5 in earnings per share for CY12 following the close of Samsung.

Following the updated guidance, Brean Murray Carret forecasts earnings potential of ~$2 and ~$6 for CY12 and CY13 at Western Digital Corp. (NYSE: WDC). The firm notes there will remain a lot of noise until the Hitachi acquisition is completed and management releases new guidance, but until then they remain bullish and are increasing their price target on shares of WDC from $28 to $31.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
• Piper Sandler Reiterates Overweight Rating on Patterson-UTI Energy (PTEN)
• UBS says bull market has further to run