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Seagate upgraded to Buy at Benchmark amid continued strong cloud demand

As previously reported, Benchmark analyst Mark Miller upgraded Seagate (STX) to Buy from Hold with a $120 price target after the company posted upside in fiscal Q2, driven by “robust” cloud demand that improved margins. While a supply constraint is expected to impact the March quarter, the firm sees continued strong cloud demand along with the growing AI business driving results in the second half of FY25 and 2026. Benchmark now projects non-GAAP earnings growing 25% year-over-year to $9.96 per share, the analyst noted.

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