Seagate Technology (STX) PT Lowered to $35 at Wells Fargo Following 4Q
Wells Fargo lowered its price target on Seagate Technology (NASDAQ: STX) to $35.00 (from $42.00) while maintaining a Market Perform rating following the company's 4Q. EPS of $0.65 was $0.39 lower vs our est. due to lower sales and gross margin. Analyst Maynard Um lowered F18E EPS to $3.71 from $4.66.
Management noted softer enterprise sales due to higher memory prices, checks suggest higher pricing is not having a material impact on enterprise sales, suggesting some of this may be more STX-specific issues that need to be worked through.