Seagate Technology PLC (STX - Get Report) stock closed down 3.5% Thursday after Barclays analyst Mark Moskowitz downgraded the company to "underweight" from "equal weight" and gave it a price target of $40, down from $49.
Moskowitz said there is limited upside for Seagate stock because most of the company's excess costs have been purged. The Irish technology company could also cede market share to rival Western Digital Corp (WDC - Get Report) if it misses the transition to 12TB hard drives.
Seagate is also at risk of decoupling its valuation multiples from Western Digital's if Toshiba Corp (TOSBF) litigation continues in Western Digital's favor, according to Moskowitz.
Moskowitz revised FY 2017 EPS to $4.43 from $4.45 and FY 2018 EPS to $4.12 from $4.41.
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"At some point it has to fall to gravity," he said told TheStreet's Scott Gamm in an interview. "It's been trading on a different planet for years and now it has to trade on Earth." Amen.
Relax Apple stock bulls: For now, reports suggest a moderate delay in the Apple (AAPL - Get Report) iPhone 8 ramp, rather than something more severe points out TheStreet's Eric Jhonsa. So far, the market has shrugged off concerns on a possible delayed iPhone 8 release (as in it misses the holiday launch window). But it's worthwhile to keep something in mind: Apple shares have lagged the S&P 500 over the past month, so some doubt may be trickling into the bull camp.
This beverage executive just went off the rails: Hat tip to TheStreet's Lindsay Rittenhouse for an insightful interview with SodaStream's (SODA) CEO Daniel Birnbaum, who pulled no punches in his views on PepsiCo (PEP - Get Report) and Coca-Cola (KO - Get Report) .
Said Birnbaum on why his company's stock has surged this year:
The company is addressing mega trends - health and wellness, convenience, consumer choice and good, important values. We have the right product at the right time. Our competition is prehistoric and that might explain the success we've seen around the world, particularly in Japan, New Zealand, Canada, Germany, Norway, all over the world. This is not a local phenomenon. This is a global mega trend. We're looking to embrace a sustainable world for our children to live in.
Birnbaum didn't shut the door on making acquisitions, either.
The discount retailer, which has sought to slash prices this year to better compete with rivals Walmart (WMT - Get Report) and Amazon (AMZN - Get Report) , said Thursday its second quarter results would come in above the high-end of its estimates for 95 cents a share to $1.15 a share. Target credited improved traffic and sales trends through the first two months of the second quarter.
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