Seagate trading at ‘fair value,’ says Benchmark

Benchmark notes that Seagate (STX) reported upside results and guided above investor expectations, driven by “robust” cloud demand. Overall, growing cloud sales are seen driving higher sales volumes and margins, while AI opportunities and PCs with AI chips are seen sequentially improving margins and non-GAAP earnings as FY25 progress, notes the analyst, who projects non-GAAP EPS of $8.44 on sales of $10.1B for FY26. The firm maintains a Hold rating with no price target on Seagate shares.