Benchmark Co. analyst Mark Miller has maintained their neutral stance on STX stock, giving a Hold rating yesterday.
Geoff Meacham has given his Hold rating due to a combination of factors pertaining to Seagate Technology’s recent performance and future outlook. Seagate’s financial results surpassed expectations, particularly due to increased sales of mass capacity and Nearline drives, which positively affected margins. This performance led to higher earnings forecasts for future quarters. Despite this, the current valuation of Seagate’s shares suggests that they are appropriately priced, which supports the decision to maintain a Hold rating.
The company’s strategic moves, such as cost reductions and mix improvements, have led to a significant gross margin increase both sequentially and year-over-year. Additionally, the launch of high-capacity drives and the anticipated ramp-up of new technology are expected to contribute positively to Seagate’s financials. However, the overall year-over-year declines in HDD sales and total shipments indicate that there are still challenges in the market. Considering these aspects, the Hold rating indicates a balanced view of potential growth against prevailing market conditions and the current share price.
Miller covers the Technology sector, focusing on stocks such as Nova, ACM Research, and Axcelis Technologies. According to TipRanks, Miller has an average return of 21.0% and a 59.55% success rate on recommended stocks.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $85.00 price target.
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Seagate Tech (STX) Company Description:
Seagate Technology Plc engages in the development, production, and distribution of data storage products and electronic data storage solutions. Its products include hard disk drives, solid state hybrid drives, solid state drives, peripheral component interconnect express cards, serial advanced technology attachment controllers, storage subsystems and computing solutions. It offers its products under the Backup Plus and Expansion product lines, and Maxtor and LaCie brands. The company was founded by Finis Conner, Syed Iftikar, Doug Mahon, David Thomas Mitchell, and Alan F. Shugart in 1978 and is headquartered in Dublin, Ireland.
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