RBC analyst Amit Daryanani said a "material ramp" in high-margin enterprise drive shipments in the second half of 2014 could lead to 30 cents a share in upside to EPS estimates. Daryanani said enterprise drives have a gross margin or 40% or more, above the company's 28.5% gross margin in the firscal third quarter.
The analyst expects EPS of $7 a share in fiscal year 2016 (ending June 2016) with the help of cost controls, buybacks, and a 305 gross margin.
RBC Capital reiterated its "outperform" rating and $60 price target for Seagate.
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Separately, TheStreet Ratings team rates SEAGATE TECHNOLOGY PLC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEAGATE TECHNOLOGY PLC (STX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: