Seagate Technology: Strong Market Position and Growth Prospects Drive Buy Rating

Citi analyst Asiya Merchant has reiterated their bullish stance on STX stock, giving a Buy rating on March 12.

Asiya Merchant has given his Buy rating due to a combination of factors that highlight Seagate Technology’s strong market position and future growth prospects. One of the key reasons is the solid demand for Hard Disk Drives (HDDs), which is expected to continue through the calendar year 2025. This demand is driven by stable build plans and the absence of inventory buildup among cloud customers, suggesting a healthy market environment.
Additionally, the constrained supply in the HDD industry further supports Seagate’s favorable outlook. Despite some macroeconomic uncertainties that could impact incremental growth, the company’s prospects are bolstered by the anticipated growth in nearline storage due to large dataset generation and storage needs, such as video data and AI Training Services. These factors, combined with a revised target price of $115, underpin the Buy rating recommendation.

In another report released on March 12, Evercore ISI also maintained a Buy rating on the stock with a $120.00 price target.

STX’s price has also changed moderately for the past six months – from $102.070 to $90.510, which is a -11.33% drop .