Seagate (STX) PT Raised to $39 at Needham & Company Amid 'Strong' Q4 and Guide; Sees Better Times Ahead
Needham & Company analyst Richard Kugele reiterated a Strong Buy rating and boosted his price target to $39 (from $33) on Seagate Technology (NASDAQ: STX) following "strong" Q4 results and guidance. The analyst sees better times ahead driven by the cloud.
Kugele commented, "Once again, in the face of a bleak outlook earlier in the year, Seagate successfully pivoted and rallied to meet the challenge. With a clear focus on completing its footprint consolidation and realigning the business to deliver the exabytes required in the nearline CSP world, we believe F4Q represents a major inflection point in the model. We believe investors should capitalize on any short-term noise in the stock/market to benefit from the improving mix, more stable TAM, restructuring savings, and more predictable cash flow well above dividend requirements. We reiterate our Buy rating and increase our tgt to $39 from $33 based on 12x F17 EPS of $3.26 (as well as a view that a 6.5% div yield is more appropriate)."
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Shares of Seagate Technology closed at $32.43 yesterday.