Citi Raises Price Target On Seagate Technology

Citi raised its price target on Seagate Technology PLC STX Wednesday from $70 to $74.

Analyst Joe Yoo saw growth ahead in the PC market and anticipated positive earnings revisions in CY14 as the overall PC market continues to recover, which should result in a significant multiple expansion for STX to the mid to high end of historical average.”

Yoo also saw “potential upside to estimates from continued build-out of cloud infrastructures (which primarily use HDDs are the storage media) and potential cyclical recovery in traditional datacenter spending (servers, storage).”

The analyst noted concluded, “We apply our target P/E multiple to our annual EPS estimate one year from the current quarter. We have moved away from using a "normalized" EPS estimate during a 2-year cycle given the industry's structural improvement to more stable margins.”

Seagate Technology PLC recently traded at $64.73, up 2.31 percent.