BMO Capital Maintains a 'Market Perform' on Seagate Technology (STX); Raising Numbers on Strong Qtr
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Price: $87.11 --0%
Rating Summary:
17 Buy, 27 Hold, 4 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 9 | Down: 8 | New: 5
Rating Summary:
17 Buy, 27 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 9 | Down: 8 | New: 5
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BMO Capital maintains a 'Market Perform' on Seagate Technology (NASDAQ: STX) price target raised from $32 to $34.
Analyst, Keith Bachman, said, "Consistent with our recent comments, STX reported material upside relative to our and Street expectations, driven by higher gross margins. Gross margins were 37.5% in the March quarter, compared with our 36.0% estimate and guidance of at least 33%. (GM upside added $0.14 to BMO's model; BMO raises FY13 EPS estimate from $8.61 to $10.30 and our FY14 EPS from $6.41 to $6.60)
"We remain MARKET PERFORM on STX, caught between the twin forces of (1) attractive valuation and (2) declining prices, which consistently pressure drives stocks. If we are too conservative on our pricing assumptions, then margins will be higher than our forecast (~29% in FY2013 and ~23% in FY2014), and the stock will move higher, in our judgment."
For an analyst ratings summary and ratings history on Seagate Technology click here. For more ratings news on Seagate Technology click here.
Shares of Seagate Technology closed at $27.89 yesterday.
Analyst, Keith Bachman, said, "Consistent with our recent comments, STX reported material upside relative to our and Street expectations, driven by higher gross margins. Gross margins were 37.5% in the March quarter, compared with our 36.0% estimate and guidance of at least 33%. (GM upside added $0.14 to BMO's model; BMO raises FY13 EPS estimate from $8.61 to $10.30 and our FY14 EPS from $6.41 to $6.60)
"We remain MARKET PERFORM on STX, caught between the twin forces of (1) attractive valuation and (2) declining prices, which consistently pressure drives stocks. If we are too conservative on our pricing assumptions, then margins will be higher than our forecast (~29% in FY2013 and ~23% in FY2014), and the stock will move higher, in our judgment."
For an analyst ratings summary and ratings history on Seagate Technology click here. For more ratings news on Seagate Technology click here.
Shares of Seagate Technology closed at $27.89 yesterday.
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