Seagate Technology (STX) PT Raised to $440 at Mizuho

Mizuho analyst Vijay Rakesh raised the price target on Seagate Technology (NASDAQ: STX) to $440.00 (from $400.00) while maintaining a Outperform rating.

The analyst comments "STX reported a strong Dec Q at $2.83B/$3.11 (cons $2.70B/$2.75) and guided MarQ to $2.90B/$3.40. Key highlights: 1) continued strength in nearline cloud demand, as DecQ EB were up 4% q/q and 31% y/y with MarQ expected to see DC strength more than offsetting MarQ seasonality for Edge IoT, 2) focus remains on driving improved areal density to increase EB shipments with focus on increasing HAMR mix, 3) HAMR ramp remains on track with all US CSPs qualified for Mozaic 3+ and Moziac 4+ shipments starting in the MarQ, and 4) avg. nearline drive capacities up 22% y/y, with further growth in the MarQ as customers continue to ramp high capacity drive to support AI and with Moxaic 4+ initial ramps. Reiterate Outperform, Raise Estimates/PT to $440 from $400, ~25.8x our F27E EPS as STX sees HAMR driving both topline and bottom line improvements in C26E."

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