Cantor Fitzgerald analyst C.J. Muse raised the price target on Seagate Technology (NASDAQ: STX) to $700.00 (from $650.00) while maintaining a Overweight rating.

The analyst commented, "We look for Seagate to report a strong beat and raise. The HDD train continues to chug along, with strong demand for Nearline by hyperscalers who continue to take the approach of “supply over price”, leading to sustained ASP growth. This, coupled with transitions to higher capacity and higher value (i.e. HAMR) drives and DD% annual cost downs should lead revenues, margins, and EPS higher for the foreseeable future. Look for mgmt. to reiterate its strategy of driving 20%+ EB growth solely through technology transitions (and no new capacity in sight). On the margin side, we continue to believe that the company will see 70-80% incremental GMs given sustained tightness and see a path towards 60% GMs longer term. We are raising our estimates, where we now see CY26/CY27 EPS of $17.00/24.00 (cons $16.75/$23.05) and outline a framework for a stretch goal of CY28 EPS of $36-45. We are raising our target price to $700 from $650, now based on an S&P-like multiple of 21x our CY28 mid-case scenario of $36, discounted back (noting conservatism here). We reiterate our Overweight rating on shares and STX remains a TOP PICK."