Following positive earnings for its first fiscal quarter of 2025, Seagate Technology (STX, Financial) stock has experienced varied market reactions Wednesday that underscored a resurgence in the hard disk drive (HDD) sector. Though the report is positive, Seagate's shares dropped 4% in early trading; other data storage companies, including Western Digital and Micron Technology, also had modest dips.
Analysts disagreed about this. Citing market constraints that could reduce Seagate's profits potential below $6 per share, Susquehanna's Mehdi Hosseini maintained a "Negative" rating and a modest $65 price target. "Despite management's execution, the market dynamics are limiting the earnings power," Hosseini said.
Rosenblatt Securities, on the other hand, maintained a "Buy" rating while lifting its price target to $140 from $125, while applauding Seagate's robust Nearline drive demand from cloud customers while boosting corporate orders.
Driven by strong Nearline drive demand from Cloud customers, Seagate presented a beat and raise earnings report, said Rosenblatt analyst Kevin Cassidy.Citing increasing demand for data storage driven by developments in AI, Morgan Stanley (MS, Financial) maintained an optimistic view, reiterating its "Overweight" rating and $134 price target.These different points of view indicate cautious hope for Seagate among continuous difficulties in the larger market.
