In a report published Monday, Morgan Stanley analyst Katy L. Huberty reiterated an Overweight rating on Seagate Technology PLC STX, and raised the price target from $65.00 to $66.00.
In the report, Morgan Stanley noted, “Investments in adjacent cloud opportunities drive revenue growth and leverage l-t, but drag down FY15 EPS estimates. The company expects to achieve a $1B revenue run rate from its cloud systems and solutions business (formed from Xyratex, EVault, and LSI's flash business) in 5-6 quarters compared to FY15 guidance of $650-$700M. By 2017, STX targets total flash + cloud revenue of $2B, which it believes is achievable without incremental acquisitions. Investment in these markets will likely increase OpEx towards the upper end of the 13-15% guidance range over the next 1-2 years, but mid-to-low single digit revenue growth should begin to drive leverage in FY16.”
Seagate Technology PLC closed on Friday at $61.01.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in