Seagate Technology (STX) Stock Downgraded at JPMorgan, RBC
NEW YORK (TheStreet) -- Shares of Seagate Technology (STX) - Get Report are retreating 6.75% to $20.30 in mid-morning trading on Monday after the Dublin-based company's stock was downgraded by two firms following disappointing results for the fiscal 2016 third quarter.
JPMorgan analysts downgraded the data storage manufacturer to "underweight" from "neutral" and cut their price target in half to $15.
"[W]e see structural weakness in end-market demand as PCs continue to be weak and flash adoption accelerates at the expense of high performance HDDs," JPMorgan said in an analyst note. "In addition, we believe that the current dividend is unsustainable given the company's earnings prospects."
Analysts at RBC Capital Markets also believe the current dividend may not sustainable and downgraded Seagate Technology to "sector perform" from "outperform." RBC analysts lowered their price target to $24 from $36.
TheStreet's Jim Cramer called the company's third quarter conference call a "disaster" and explained that Seagate Technology is failing to compete with cloud storage providers on CNBC's "Squawk on the Street" this morning.
Separately, Seagate Technology has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's generally disappointing stock performance, deteriorating net income and poor profit margins.
You can view the full analysis from the report here: STX
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.
