UPDATE: Brean Murray Carret Reiterates Buy, $38 PT on Seagate Technology Following Guidance Cut

Brean Murray Carret reiterates its Buy rating and $38 price target on Seagate Technology STX as the company pre-announced negatively on its fourth fiscal quarter. Brean Murray Carret says, "All in all, while STX's Sep Q unit guidance of flat Q/Q with 66M in the Jun Q is concerning (although likely with a bit of conservatism), we also believe that other key parts of STX's preliminary Jun Q results and Sep Q guidance were better than widely anticipated –more revenue softness than we expected notwithstanding. Results are revenue of $4.5B (vs. guidance of $5B+), units of 66M which were ~2  ‐ 3M shy of their guidance (but in‐line with our estimate), and GM of 33.6% (vs. guidance of at least 34.5%; ex a one‐time hit to their enterprise business, GM would have been above STX GM guidance range)." Seagate Technology closed at $25.08 on Tuesday.