Following positive earnings for its first fiscal quarter of 2025, Seagate Technology (NASDAQ:STX) stock has experienced varied market reactions Wednesday that underscored a resurgence in the hard disk drive (HDD) sector. Though the report is positive, Seagate’s shares dropped 4% in early trading; other data storage companies, including Western Digital and Micron Technology, also had modest dips.
Analysts disagreed about this. Citing market constraints that could reduce Seagate’s profits potential below $6 per share, Susquehanna’s Mehdi Hosseini maintained a “Negative” rating and a modest $65 price target. “Despite management’s execution, the market dynamics are limiting the earnings power,” Hosseini said. Rosenblatt Securities, on the other hand, maintained a “Buy” rating while lifting its price target to $140 from $125, while applauding Seagate’s robust Nearline drive demand from cloud customers while boosting corporate orders.
Driven by strong Nearline drive demand from Cloud customers, Seagate presented a beat and raise earnings report, said Rosenblatt analyst Kevin Cassidy.Citing increasing demand for data storage driven by developments in AI, Morgan Stanley (NYSE:MS) maintained an optimistic view, reiterating its “Overweight” rating and $134 price target.These different points of view indicate cautious hope for Seagate among continuous difficulties in the larger market.
This article first appeared on GuruFocus.