Here's Why Seagate Technology (STX) Stock is Rallying Today
NEW YORK (TheStreet) -- Seagate Technology (STX) - Get Report shares are jumping 1.38% to $19.05 on Friday afternoon following the announcement that the data storage company is teaming up with China computer maker Sugon.
This collaboration reflects Seagate's efforts to tap into the fast-growing data center market.
Under the partnership, Sugon will incorporate Seagate's latest 4TB Enterprise Performance 3.5 HDD into its new TC4600T line of server products.
Overall, there have been challenges for companies to effectively store and manage huge amounts of data, Seagate noted.
In an effort to address these concerns, "both Seagate and Sugon have paid close attention to customer needs and are committed to providing the best solutions for users to make the most of their data," said Sandy Sun, Seagate's VP and GM for Asia-Pacific and China sales.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C-.
The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
You can view the full analysis from the report here: STX
