Seagate Technology (STX) PT Raised to $34 at Susquehanna

Susquehanna analyst Mehdi Hosseini raised the price target on Seagate Technology (NASDAQ: STX) to $34.00 (from $32.00) while maintaining a Negative rating.

The analyst commented, "We are increasing our near term estimates to account for the change in depreciation schedule and also accounting for good traction with 16TB shipment. However, looking into 2020 and beyond, we expect declining revenue trends (vs. company's growth target of 2-6%) driven by declining TAM outside of high capacity Nearline, particularly Mission Critical. All in all, our updated FY/CY20 EPS estimates of $4.15/$4.00 compare to the current consensus of $4.60/$4.80. We are also using this opportunity to introduce our FY/CY21 EPS estimates of $4.01/$4.40 vs. the current consensus of $5.01/$4.97.Our updated PT of $34 is based on ~8x normalized EPS of $4.25."

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