UPDATE: FBN Securities Downgrades Seagate Technology to Sector Perform Following Share Run
FBN Securities downgraded Seagate Technology (NASDAQ: STX) from Outperform to Sector Perform and raised the price target from $35.00 to $40.00.
FBN Securities noted, "STX beat FQ2/Dec. revenue and EPS expectations and gained share, but its revenue guidance of $3.25-$3.45B is below prior consensus of $3.48B. As our channel checks suggest stable pricing, STX's guidance suggests a rather steep unit decline Q/Q (we estimate down 5%, worse than WDC's -1% (our estimate) as STX gives back some market share gain that occurred in FQ2/Dec. We also see growing risk that GM undercuts the low-end of its targeted 27-32% range due to two factors: 1.) revenue is expected to decline by 6-11% Q/Q (worse than WDC's guided 5-7% Q/Q decline), and 2.) we don't expect STX to benefit as much from mix (STX's enterprise units grew by a strong 16% Q/Q last quarter)."
Seagate Technology closed at $37.41 on Monday.
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