UPDATE: FBN Securities Cuts Target of Seagate Technology to $35

FBN Securities lowers its price target from $40 to $35 on Outperform-rated Seagate Technologies

on lower HDD TAM assumptions and aggressive pricing throughout channels. FBN Securities notes, "Due to lower ASP assumptions, we no longer believe that STX can obtain over $20B in revenue in C2012 (we now model $19.1B), even though it has long-term agreements (LTAs) that are expected to account for over 60% of its production in C2012. These LTAs are with its OEM customers, but do not apply to the channel where STX derives roughly 20% of revenue. Our channel checks indicate that pricing started to decline more aggressively over the past five weeks, and this decline alone is causing us to lower our GM assumptions in FQ4/June and FQ3/Sept." STX closed at $27.44 a share yesterday.