This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Stock Upgrades: Seagate

NEW YORK ( TheStreet) -- These stocks received upgrades to buy from TheStreet Ratings on Thursday:

Shares of Seagate, the hard-disk drive maker, gapped up at Wednesday's open to $24.08 from $21.09 at Tuesday's close.

The company surpassed analysts' earnings expectations for its fiscal second quarter on Tuesday. Seagate reported earnings of $581 million, or $1.32 a share, which beat analysts' estimates of $1.08.

Brean Murray Carret analysts raised their price target on Seagate on Wednesday to $30 from $26 in part based on strong company guidance from Seagate.

"We'd be aggressively buying the shares here as we believe this is minimally a $30 stock (trading at just 2.8x our CY12 EPS)," the Brean Murray Carret analysts wrote in a report Wednesday.

Seventeen of the 24 analysts who cover Seagate rated it a buy. Six categorized it as a hold and one considered it a sell.

CEO Stephen Luczo said in the second-quarter earnings conference call that for the June quarter, the company expects its "supply chain capabilities will continue to improve, which will result in revenues of at least $5 billion and gross margins comparable to those expected for the March quarter. In light of the persistent supply-demand imbalances that we believe will exist throughout the calendar year, combined with greater visibility due to our LTAs, we currently expect a relatively benign pricing environment resulting in revenues of at least $20 billion for calendar year 2012."

Seagate's price-to-earnings ratio is 11.55, which is less than the S&P 500's 13.84. The stock reached a 52-week high on Wednesday at $26.15 and is trading close to that level on Thursday.

The stock closed at $25.53 on Wednesday. It has risen 55.67% year to date.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

-- Written by Alexandra Zendrian

>To contact the writer of this article, click here: Alexandra Zendrian

>To submit a news tip, send an email to:

>To follow the writer on Twitter, go to Alexandra Zendrian.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BRT $7.12 0.00%
DNR $7.64 0.00%
GPRO $43.58 0.00%
ISH $12.09 0.00%
JLL $169.11 0.00%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs