Seagate Technology Holdings’ consensus price target has been raised to $166.42, as analysts cite strengthening nearline/HAMR demand, structural industry profitability improvements, and robust EPS growth outlook, though some caution persists over shipment and margin growth peaking in 2025.
Analyst Commentary
- Bullish analysts cite strong and improving demand in the hard disk drive market, particularly from cloud/hyperscale customers, with stable pricing and tight supply supporting the industry’s profitability.
- Positive momentum is attributed to the successful ramp of Seagate’s heat-assisted magnetic recording (HAMR) technology and expectations for continued beats/raises driven by robust nearline and growing HAMR demand.
- Upward price target adjustments reflect expectations for accelerating Exabyte shipment growth, structural industry profitability improvements, and Seagate’s ability to achieve significant EPS growth towards 2026 and beyond.
- BofA highlights Seagate’s increasing profitability through improved areal density, its ability to maintain revenue growth despite cost-per-terabyte declines, and resilient unit capacity.
- Bearish analysts flag concerns about fiscal 2025 EPS peaking earlier than previously thought, driven by a deceleration in shipment growth and potential margin topping out near 30%, despite a higher-than-expected peak level.
What's in the News
- Seagate completed the repurchase of 81,428,994 shares (33.44%) for $5.34 billion under its ongoing buyback program but did not repurchase any shares in the most recent tranche.
- Seagate provided fiscal Q1 2026 revenue guidance of $2.50 billion, plus or minus $150 million.
- Seagate announced global channel availability of up to 30TB Exos M and IronWolf Pro hard drives, featuring HAMR technology on the Mozaic 3+ platform, positioning the company as a leader in high-density storage for AI, hyperscale, and enterprise data centers.
Valuation Changes
Summary of Valuation Changes for Seagate Technology Holdings
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $163.53 to $166.42.
- The Future P/E for Seagate Technology Holdings remained effectively unchanged, moving only marginally from 17.71x to 18.03x.
- The Discount Rate for Seagate Technology Holdings remained effectively unchanged, at 8.11%.
Disclaimer
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