Seagate Technology Surges: Morgan Stanley Boosts Stock Rating and Price Target

The Surge in Seagate Technology Stock Price Today

In the data storage industry, Seagate Technology (STX) is seeing remarkable growth as its stock surges with a 9% increase in share price by 3 p.m. ET on Tuesday. The surge in Seagate stock’s value can be attributed to a note published by Morgan Stanley this morning, which upgraded its rating from equal weight to overweight and raised its one-year price target from $73 per share to $115 per share.

Despite a 56% increase in the last year, Seagate stock is still down about 17% from its high. However, Morgan Stanley’s analysts believe that the specialist in storage hardware will reach new peak valuations in the near future due to its positioning and HAMR technologies. They predict that Seagate will benefit from the recovery in the data storage market and AI-related demand, which will lead to stronger sales and earnings performance.

With the data storage industry on an upward trend and AI-related demand growing, Seagate’s profitability could see substantial improvements. Morgan Stanley’s analysts believe that Seagate’s earnings performance in the near term could exceed expectations by 25% to 30%. Additionally, they anticipate that investors may assign higher valuation multiples to Seagate and other data storage stocks due to their connection to the AI revolution.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool also has no position in any of the stocks mentioned and has a disclosure policy.

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