JP Morgan Downgrades Seagate Technology to Neutral, Lowers PT to $14

A report from J.P. Morgan states that it has lowered the price target from $22 to $14 and downgraded Seagate Technology

to Neutral. J.P. Morgan writes, “Our prior thesis had been that a potential bottoming in PCs and the longer-term benefits of HDD consolidation stood to boost Seagate's gross margin profile 200-300 bps. Today, our revised view is that PCs remain close to bottoming, but struggles with new product transitions and market share losses in the enterprise could result in below-peer gross margin trends. While these factors could be temporal, we prefer to be Neutral on shares of Seagate until there is less execution risk”. STX closed yesterday at $11.17.