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Seagate Technology shares surged Wednesday as analysts raised their price targets for the stock after the data storage provider’s quarterly results topped estimates.
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Morgan Stanley called the stock a “top pick,” citing AI-driven demand for data storage.
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The company said it is ramping up production of its high-capacity hard drives, which analysts see as a tailwind going into the back half of the year.
Seagate Technology (STX) shares jumped Wednesday as several analysts raised their price targets for the data storage solutions provider’s stock after the company’s fiscal second-quarter results topped estimates.
Morgan Stanley analysts called Seagate’s stock a “top pick,” amid a “period of AI-driven storage demand growth.” The analysts said accelerating data growth is pushing up demand for storage both in the cloud and on-premises, which benefits Seagate. Morgan Stanley lifted its price target to $134 from $129, and maintained an “overweight” rating.
Elsewhere, analysts at Mizuho boosted their price target to $115 from $107, and Citi increased its target to $125 from $120. The consensus target compiled by Visible Alpha is $117, an 8% premium over Wednesday’s closing price of $108.18.
Seagate said Tuesday it is ramping up production of its high-capacity hard drives based on HAMR (heat-assisted magnetic recording) technology, which Mizuho analysts added could act as a tailwind going into the back half of the year.
Shares of Seagate surged close to 7% Wednesday and are up more than 21% over the past year.
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