UPDATE: Seagate Upgraded by Morgan Stanley

In a report published Tuesday morning, Katy Huberty of Morgan Stanley has upgraded

from Equalweight to Overweight with a price target of $72. The report notes, "Improving unit volumes and more favorable mix continue to expand margins. We model 20 bps of gross margin expansion in FY15 to 28.7%, as enterprise/cloud mix is partially offset by the lower margin Xyratex business in the near-term. Industry consolidation and stable fundamentals expand the P/E multiple to the low-end of similarly consolidated industries (CPUs and HBAs)." STX closed Friday at $61.20 and is currently trading up around $61.80.