Benchmark Sees Weaker Trends Continuing For Data Storage Stocks, Especially In Asia - Seagate Tech Hldgs (NASDAQ:STX)

Benchmark analyst Mark Miller reiterated a Hold on Seagate Technology Holdings PLC STX. The firm does not provide price targets for Hold-rated stocks.
The drive companies have recently significantly lowered their forecasts for the September quarter due to weaker trends, especially in Asia, where inventory corrections are currently underway.
Last week citing similar concerns, memory chip manufacturer Micron Technology, Inc MU guided for a significant sequential decline and a possible loss for this quarter.
Micron believes the weakness will extend into early next year.
Seagate and Western Digital Corp WDC reported they saw more cautious buying behavior from some cloud and enterprise customers.
He sees this trend expanding. As such, he cut his FY23 estimates.
Some improvements are likely in 2H23, and the high dividend yield convinced him to reiterate a Hold.
He reduced his December quarter forecast from non-GAAP EPS of $1.22 on sales of $2.4 billion to non-GAAP EPS of $1.02 on sales of $2.25 billion.
His FY23 forecast goes from non-GAAP EPS from $5.36 on sales of $9.85 billion to non-GAAP EPS of $4.32 on sales of $9.15 billion.
Price Action: STX shares traded lower by 3.10% at $55.65 on the last check Thursday.