UPDATE: RBC Upgrades Seagate, Sees It As "Attractive" Buy
In a report published Friday, RBC Capital Markets analyst Amit Daryanani upgraded Seagate Technology (NASDAQ: STX) from Sector Perform to Outperform and raised the price target from $59.00 to $60.00.
Daryanani noted that many factors could benefit Segate including the EPS tailwind from OPEX reverting, capital allocation, and benefits from enterprise demand. The analyst wrote that the current valuation is very attractive and [we] "we think the current valuation is extremely attractive and recommend investors build/ add to positions ahead of multiple catalysts in H2:14."
RBC commented, "We believe Seagate remains well equipped to weather the volatility of the disk drive industry, where survival requires a delicate balance between near-term profitability and long- term share position. The company has assembled a broad portfolio of disk drive solutions, spanning capacities, form factors, and rotational velocities. Taken in combination with its vertically integrated manufacturing strategy, Seagate can flexibly and efficiently address the vast majority of existing and emerging applications in the enterprise, desktop, mobile, and consumer electronics segments."
Shares of Seagate Technology closed at $50.02 on Thursday and are currently trading up 1.78% at $50.91.
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