NEW YORK (TheStreet) -- Seagate Technology (STX) shares had their "overweight" rating reiterated by analysts at Morgan Stanley (MS) , who also raised the company's price target to $66 from $65.
The firm noted the company's own revised 2015 revenue guidance as a reason for the upgraded outlook.
"The company expects to achieve a $1B revenue run rate from its cloud systems and solutions business (formed from Xyratex, EVault, and LSI's flash business) in 5-6 quarters compared to FY15 guidance of $650-$700M. By 2017, STX targets total flash + cloud revenue of $2B," said analysts.
Despite this positive note Seagate Technology shares are down 2.7% to $58.38 today.
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, notable return on equity, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."