Seagate Technology (STX) PT Raised to $468 at Morgan Stanley

Morgan Stanley analyst Erik Woodring raised the price target on Seagate Technology (NASDAQ: STX) to $468.00 (from $372.00) while maintaining a Overweight rating.

The analyst comments: "Once again, our bull case is becoming our base case as effectively all metrics outperform expectations; Remain OW. Despite facing higher expectations than last quarter, STX once again delivered across practically all metrics — outperforming on revenue growth, gross margins, operating margins, and EPS, and guiding to a March quarter ahead of buyside expectations, especially on the margin front. Big picture, HDDs continue to benefit from strengthening data center storage demand (video, agentic AI, multi-modal, checkpointing, etc.), a favorable supply/demand landscape that is benefitting pricing, and positive mix shift to higher capacity HDDs that garner premium margins. And at the micro level, Seagate's HAMR ramp is accelerating, with over 1.5M shipments of the Mozaic 3 platform this quarter (vs. ~1M last quarter), all major US CSPs qualified on Mozaic 3, and a growing number of CSPs qualifying Mozaic 4, where mgmt is expecting a strengthening ramp in 2H26. Stepping back, it's hard to nitpick on any major aspect of the quarter/guide (though NL EBs did fall slightly light of our forecast, offset by stronger pricing), and while we sound like a broken record (in a good way), our FY27 estimates are moving 25% higher again, and we can still find healthy upside in our model, primarily on pricing and gross margins."

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