:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1898131339-9870d07e9aa94fe28b9e01dae2d2445c.jpg "Seagate Technology company offices exterior.")
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Key Takeaways
- Seagate Technology shares surged Wednesday as analysts raised their price targets for the stock after the text storage provider’s fiscal second-quarter results topped estimates.
- Morgan Stanley called the stock a “top pick,” citing AI-driven inquire for data storage.
- The company said it is ramping up production of its high-capacity hard drives, which analysts see as a tailwind accepted into the back half of the year.
Seagate Technology (STX) shares jumped Wednesday as several analysts raised their toll targets for the data storage solutions provider’s stock after the company’s fiscal second-quarter results topped guesses.
Morgan Stanley analysts called Seagate’s stock a “top pick,” amid a “period of AI-driven storage demand development.” The analysts said accelerating data growth is pushing up demand for storage both in the cloud and on-premises, which promotes Seagate. Morgan Stanley lifted its price target to $134 from $129, and maintained an “overweight” rating.
Away, analysts at Mizuho boosted their price target to $115 from $107, and Citi increased its target to $125 from $120. The consensus objective compiled by Visible Alpha is $117, an 8% premium over Wednesday’s closing price of $108.18.
Seagate said Tuesday it is ramping up Canada display of its high-capacity hard drives based on HAMR (heat-assisted magnetic recording) technology, which Mizuho analysts supplemented could act as a tailwind going into the back half of the year.
Shares of Seagate surged close to 7% Wednesday and are up to 21% over the past year.