Morgan Stanley analyst Erik Woodring reiterated a Buy rating on Seagate Tech (STX – Research Report) today and set a price target of $138.00.
Erik Woodring has given his Buy rating due to a combination of factors that suggest a positive outlook for Seagate Technology. Recent industry and supply chain evaluations have reinforced confidence in the durability of the hard disk drive (HDD) cycle, which is expected to drive revenue growth, improved gross margins, and increased earnings per share (EPS) and free cash flow (FCF) through the calendar year 2025. This anticipated growth is likely to lead to positive EPS revisions and a re-rating of the stock in the coming months.
Additionally, Seagate’s upcoming Analyst Day is seen as a potential catalyst for further positive momentum, as the company is expected to present a new long-term growth and margin outlook that surpasses current market expectations. Despite an increase in the assumed tax rate, the EPS estimates for fiscal years 2026 and 2027 remain significantly above consensus, and the FCF valuation appears attractive. These factors collectively support the new price target of $138, with a bullish case valuation of $170.
In another report released on February 13, TD Cowen also maintained a Buy rating on the stock with a $135.00 price target.