• Mon. May 20th, 2024

Seagate Technology Stock Soars as Morgan Stanley Upgrades Its Rating and Price Target

BySamantha Nguyen

Mar 27, 2024
The Surge in Seagate Technology Stock Prices Today

Seagate Technology (STX) stock is soaring in Tuesday’s trading session, with its share price up 9% as of 3 p.m. ET. According to S&P Global Market Intelligence data, the memory chip company’s stock is currently trading at $8.24.

Morgan Stanley released a note on Seagate this morning, upgrading its rating on the stock from equal weight to overweight. The firm’s analysts also raised their one-year price target on Seagate stock from $73 per share to $115 per share.

Despite having risen approximately 56% over the past year, Seagate stock is still down around 17% from its peak. However, Morgan Stanley’s latest coverage suggests that the firm anticipates the stock to reach a new valuation high in the near future.

The analysts at Morgan Stanley believe that Seagate will benefit from the ongoing recovery in the data storage market. They also expect the company’s leading position in heat-assisted-magnetic-recording (HAMR) technologies to drive stronger sales and earnings performance. Additionally, with the rise of generative artificial intelligence (AI), demand for Seagate’s products is expected to be a significant performance driver.

With the data storage industry experiencing an upturn and an increase in demand related to AI, Seagate’s profitability could see significant improvement. Morgan Stanley’s analysts project that the company’s near-term earnings performance could be 25-30% better than previously expected.

Furthermore, there is a belief that AI-related demand will continue to boost performance and potentially lead to higher valuation multiples for Seagate and other data storage companies. This could result in improved sales, earnings, and overall market sentiment towards the sector.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

Leave a Reply