:max_bytes(150000):strip_icc()/GettyImages-1898131339-9870d07e9aa94fe28b9e01dae2d2445c.jpg?w=1920&resize=1920,1267&ssl=1 "Seagate Stock Soars as Analysts Raise Targets on AI-Driven Data Storage Demand | Global News Avenue")
Seagate Stock Soars as Analysts Raise Targets on AI-Driven Data Storage Demand
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Main points
- Shares of data storage provider Seagate Technology soared Wednesday after analysts raised their price targets on the stock after its quarterly results beat expectations.
- Morgan Stanley calls the stock a “top pick,” citing artificial intelligence-driven data storage needs.
- The company said it is ramping up production of high-capacity hard drives, which analysts see as a positive for the second half of the year.
Seagate Technology (STX) shares jumped Wednesday as several analysts raised price targets on the data storage solutions provider’s stock after the company’s fiscal second-quarter results beat expectations.
Morgan Stanley analysts call Seagate stock a “top pick” during a period of “artificial intelligence-driven storage demand growth.” Analysts say accelerating data growth is driving up demand for cloud and on-premises storage, which is good for Seagate. Morgan Stanley raised its target price to $134 from $129 and maintained an “overweight” rating.
Elsewhere, analysts at Mizuho raised their target price from $107 to $115, while Citigroup raised their target price from $120 to $125. Visible Alpha compiled a consensus target of $117, an 8% premium to Wednesday’s closing price of $108.18.
Seagate said on Tuesday it was ramping up production of high-capacity hard drives based on HAMR (heat-assisted magnetic recording) technology, which Mizuho analysts added could be a driver in the second half of the year.
Seagate shares soared nearly 7% on Wednesday and are up more than 21% in the past year.
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