BofA Maintains Buy on Seagate Technology Holdings (STX) Stock, Raises PT

On May 28, BofA Securities exhibited a positive stance on Seagate Technology Holdings plc (NASDAQ:STX)’s stock by increasing the price target from $125.00 to $135.00, while maintaining a “Buy” rating. The analyst demonstrated confidence in numerous aspects of Seagate Technology Holdings plc (NASDAQ:STX)’s business.

BofA Maintains Buy on Seagate Technology Holdings (STX) Stock, Raises PT

A technician configuring a network-attached storage drive.

These include the roadmap for areal density, capability to balance supply and demand across market cycles because of its customer base having few very large clients, and its cost management capabilities in future downcycles. Furthermore, the firm’s analyst mentioned the long-term demand for hard disk drives (HDDs) in data centers and the expectation for elevated margin levels because of a product mix transition towards Heat-Assisted Magnetic Recording (HAMR) technology, which can be achieved without the need for incremental unit capacity investments.

Overall, the optimism from BofA Securities on Seagate Technology Holdings plc (NASDAQ:STX)’s stock is mainly backed by the secular demand trends from Cloud services. The company’s strong emphasis on innovation, mainly in HAMR technology, can help strengthen its competitive edge.

Seagate Technology Holdings plc (NASDAQ:STX) provided new financial targets for the period through FY 2028, which are aided by HAMR technology adoption. Over FY 2025 – FY 2028, it expects revenue to see low-to-mid teens CAGR.

Seagate Technology Holdings plc (NASDAQ:STX) provides data storage technology and infrastructure solutions.

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Disclosure: None.