Analysts have raised Seagate's price target from $107.80 to $136.82, reflecting confidence in sustained profitability and revenue growth driven by new areal density technology, robust data center demand, and industry supply discipline supporting higher margins and stable pricing.
Analyst Commentary
- Bullish analysts anticipate that Seagate can deliver significant profitability improvements via advances in areal density technology, allowing sustained revenue growth even as cost per terabyte declines.
- Projections show Seagate growing exabyte (EB) shipments at a low-20s CAGR (2025-2028) while holding unit capacity flat, underpinning long-term revenue expansion.
- Data center and hyperscaler demand is expected to outpace exabyte production growth, leading to continued tight supply and supporting stable or firm hard disk drive pricing.
- Ongoing constrained production, particularly with new HAMR technology, and Seagate's reluctance to chase market share, are seen as positive for industry pricing and margins, reducing concerns of oversupply.
- Industry data growth fundamentals remain robust, with recent indications of persistent solid demand and favorable pricing dynamics for Seagate and peers.
What's in the News
- Seagate launched up to 30TB Exos M and IronWolf Pro hard drives using Mozaic 3+ and HAMR technology, achieving industry-leading capacity and over one million Mozaic drives shipped, targeting growing AI-driven enterprise storage needs.
- The company increased its share repurchase authorization by $5 billion, raising the total buyback capacity to $12.3 billion.
- Seagate reported no shares repurchased between December 28, 2024, and March 28, 2025; cumulative repurchases now total 81.43 million shares (33.44%) at $5.34 billion since November 2018.
- Fiscal Q4 2025 revenue guidance was set at $2.40 billion, plus or minus $150 million.
Valuation Changes
Summary of Valuation Changes for Seagate Technology Holdings
- The Consensus Analyst Price Target has significantly risen from $107.80 to $136.82.
- The Consensus Revenue Growth forecasts for Seagate Technology Holdings has significantly risen from 7.8% per annum to 12.1% per annum.
- The Net Profit Margin for Seagate Technology Holdings has significantly risen from 15.53% to 20.32%.
Disclaimer
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