Seagate price target raised to $105 from $95 at UBS

UBS analyst Timothy Arcuri raised the firm’s price target on Seagate (STX) to $105 from $95 and keeps a Neutral rating on the shares. Seagate’s results and guidance were strong due to better gross margin as the company maintains pricing discipline and moves average density per drive higher with the strong ramp in 24/28TB drives, the analyst tells investors in a research note. The pricing story has so far played out well, though the capacity is now largely full, and the risk is now heightened on both the supply and demand side as customers may force the industry’s hand to grow supply by placing orders they may not ultimately need, UBS says. All forms of memory and storage should ultimately benefit from AI, but DRAM is the first to benefit and HDD probably the last to benefit so the firm still prefers memory.