Seagate Technology (STX) PT Raised to $125 at Rosenblatt
Rosenblatt analyst Kevin Cassidy raised the price target on Seagate Technology (NASDAQ: STX) to $125.00 (from $115.00) while maintaining a Buy rating.
The analyst commented: "Demand from CSPs and Video & Imaging Application drove demand slightly above expectations. More importantly, the build-to-order strategy allowed for better manufacturing utilization as well as increasing prices resulting in Non-GAAP gross margins expanding to 30.9% from 26.1% last quarter and 19.5% last year. Manufacturing adjustments made during the downturn is resulting in 30%+ gross margin at 1/3rd lower revenue. This provides strong earnings leverage. We are increasing our estimates and 12-month price target to $125. We continue recommending the stock for the company’s HDD technology leadership, operating expertise and investor friendly capital allocation policy."