UPDATE: Morgan Stanley Downgrades Seagate Technology (STX) to Equalweight

Morgan Stanley analyst Katy Huberty downgraded Seagate Technology (NASDAQ: STX) from Overweight to Equalweight with a price target of $88.00 (from $118.00).

The analyst comments "Seagate benefits from accelerating data storage growth as enterprises adopt new data technologies like AI & IoT, helping return the company to mgmt's LT target for 3-6% revenue CAGR. We're bullish on the long term outlook for STX and the HDD industry, as greater than 50% of HDD revenue and capacity shipments are now to secularly growing end markets such as Cloud and VIA. However, STX isn't immune to cyclical demand weakness, and we see early signals pointing to moderating cyclical demand into year end and 2022. The combination of fading cyclical demand, rising channel inventories, and moderating ASP growth, create a more balanced risk reward going forward."

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 $85.15 yesterday.

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