UPDATE: Pacific Crest Securities Upgrades Seagate Technology on Overblown Investor Concerns
In a report published Wednesday, Pacific Crest Securities analyst Monika Garg upgraded the rating on Seagate Technology PLC (NASDAQ: STX) from Sector Perform to Outperform, and named a $53.00 price target.
In the report, Pacific Crest Securities noted, “We believe the market is too concerned about PCs and potential for share loss to flash. A decline of 5 million PCs is offset by 1 million more enterprise capacity drives, so things even out. The top nine cloud customers constitute 35% of Seagate's enterprise revenue. Enterprise margins are 70% to 80% higher than PC margins. As HDD models get weighted toward enterprise drives, margins could rise, in our view. Also flash capacity is less than 10% of disk capacity and flash continues to be more than 10x the cost on a dollar per GB basis.”
Seagate Technology PLC closed on Tuesday at $44.70.
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