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Seagate named IT Hardware Top Pick at Morgan Stanley, replacing Apple
The Fly

Seagate named IT Hardware Top Pick at Morgan Stanley, replacing Apple

Morgan Stanley lowered the firm’s price target on Seagate (STX) to $129 from $133 and keeps an Overweight rating on the shares, which are the analyst’s new IT Hardware Top Pick, replacing Apple (AAPL). The firm’s model now accounts for a lower March-end quarter revenue base, with revenue and EPS now forecast at $2.1B and $1.65, though it sees this supply issue as transitory, the analyst tells investors. The firm’s increased comfort in the hard disk drive cycle persisting, alongside the transitory supply issues, can “create a June quarter revenue snap-back,” the analyst contends.

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