UPDATE: Morgan Stanley Upgrades Seagate Technology to Overweight, $72.00 PT

In a report published Tuesday, Morgan Stanley analyst Katy Huberty upgraded Seagate Technology PLC

to Overweight, with a $72.00 price target. According to the report, several catalysts are seen by analysts for HDD stocks including improving PC trends, uptick in cloud demand, margin expansion from volume and mix, and OpEx savings post deal integration. “US channel inventory remains healthy, our Alphawise survey highlights potential for better developed market consumer PC growth, our January CIO survey highlights improved commercial PC demand in front of XP support expiration and as desktop virtualization and tablet growth slows,” the report noted. “PC volume stability will drive ~50bps of gross margin expansion in F2H14 and FY15 which is now baked into our base case estimates.” Some highlights from the report included: -Cloud demand inflecting higher -Acquisition integration could lower OpEx in FY15 -P/E multiples likely to expand toward other consolidated component industries STX closed Friday at $62.44 with shares trading up at 1.91 percent.