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Barclays Upgrades Seagate Tech to Equal-Weight, Raises PT to $180 from $125
ByAinvest
Thursday, Aug 28, 2025 10:37 am ET1min read
Barclays Upgrades Seagate Tech to Equal-Weight, Raises PT to $180 from $125
Barclays analyst Tom O'Malley has significantly increased Seagate Technology Holdings plc (STX) price target from $125 to $180, maintaining an Equal Weight rating. The upgrade reflects the company's progress in heat-assisted magnetic recording (HAMR) technology and a favorable outlook for the HDD sector [1].Seagate's recent financial performance has been impressive. The company reported a 36.29% revenue growth in the June quarter, driven by increasing demand for cloud computing and record Nearline drive shipments. The company's Nearline drives are fully booked through mid-2026, reflecting the growing need for data storage solutions in the cloud sector [2].
The company's strong financial health is underscored by a current ratio of 1.38 and a record high gross margin of 37.9% in the fiscal fourth quarter of 2025. However, the debt-to-equity ratio is negative, and insider selling activity has been significant, which may indicate potential concerns among management and insiders [1].
Despite these challenges, Seagate's stock performance has been driven by robust market demand for its products and services. Analysts have responded positively to these developments, raising their price targets and maintaining an optimistic outlook for the company. Rosenblatt, TD Cowen, Benchmark, Mizuho, and Cantor Fitzgerald have all raised their price targets, reflecting the industry's positive view of Seagate's future prospects [2].
In conclusion, Seagate Technology's stock performance reflects a strong market position and robust demand for its data storage solutions. The company's ability to adapt to market trends and capitalize on growth opportunities has contributed to its impressive stock performance. However, investors should be mindful of the potential impact of the rising corporate tax rate on the company's future profitability.
References:
[1] https://www.ainvest.com/news/barclays-analyst-boosts-seagate-price-target-optimistic-industry-outlook-2508/
[2] https://www.ainvest.com/news/seagate-technology-reports-36-revenue-growth-june-quarter-driven-nearline-drive-demand-2508/
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