Seagate Technology (STX) PT Raised to $120 at Stifel

October 22, 2021 1:55 PM EDT
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Price: $105.70 -2.6%

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    17 Buy, 26 Hold, 2 Sell

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Stifel analyst Patrick Ho raised the price target on Seagate Technology (NASDAQ: STX) to $120.00 (from $115.00) while maintaining a Buy rating.

The analyst commented, "Following Seagate’s 1Q22 earnings call, we were pleasantly surprised on the improving near-term demand outlook, and long-term, we believe our secular thesis in the name was also reinforced. We noted that demand trends, particularly on the cloud/data center end remained healthy, and this came in even better than we thought as our December quarter forecast was raised, along with its FY22 (June) outlook. The FY22 outlook increase is particularly noteworthy, given the improved visibility and the continued shift toward mass capacity drives. Seagate also delivered strong results led by better-than-expected margins, which we believe have more upside longer term. Finally, some of the concerns coming in were addressed (channel inventory) and some are overblown (PC concerns, crypto-currency) and weighed unnecessarily on the name. Our estimates are increasing, and in turn, our target price increases to $120, based on the same 2.5x EV/sales multiple off our new CY22 revenue forecast."

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