UPDATE: Bank of America Downgrades Seagate Technology; Raises PO

According to a research report published this morning, Bank of America has downgraded Seagate Technology STX from Buy to Neutral, and has increased PO from $31 to $32. In the report, Bank of America said, "Western Digital (WD) management provided unexpected commentary on their F3Q12 earnings call, and we are downgrading Seagate to Neutral, along with Western Digital (WD, C-2-9, $44.10). While WD reported significantly better than expected F3Q12 EPS at $2.52 vs. our/Street $1.60/1.55, driven by revenue and margin. Guidance was disappointing (EPS of $2.35-2.55 vs. our/Street $2.67/2.30) and commentary pointed to softer demand than expected going forward, at current/elevated ASPs levels, and some pricing concessions (certain HGST customers, pre-acquisition)." Seagate Technology closed yesterday at $31.09.
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