Seagate Technology (STX) received an upgrade by Benchmark analyst Mark Miller to buy from hold amid expectations of strong demand for the data-storage device company's products.
He upgraded the stock on “expected strong cloud demand into next year and indications of improved demand in the enterprise segment." Miller has a share-price target of $60.
Seagate Technology shares traded Friday at 51.04, down 1.45%. The stock has dropped 14% so far this year.
On Thursday, Seagate Technology reported that revenue slid 10.2% to $2.31 billion in the 2021 fiscal first quarter ended Oct. 2, from $2.58 billion in the year-ago quarter. Analysts forecast $2.34 billion for the latest figure, according to Barron's. Seagate had forecast revenue of $2.1 billion to $2.5 billion.
Adjusted profit totaled 93 cents a share, down from $1.03 last year, topping analysts' estimate of 88 cents. Seagate had predicted 70 cents to $1.
For the current quarter, Seagate Technology forecast adjusted EPS of 95 cent to $1.25 on revenue of $2.35 billion to $2.75 billion.
Meanwhile, Mizuho Securities cut its share-price target to $54 from $56 for Seagate, keeping its neutral rating. Seagate faces “seasonality and near-term [gross margin] headwinds,” despite a buoyant picture for cloud demand in the first half of next year, Mizuho said.
Stifel has a buy rating with a $63 share-price target on Seagate. It noted that Seagate “came away confident to call the September quarter a ‘bottom’” and buttressed its capital allocation strategy, “which we believe benefits shareholders over the longer term.