Update shared on13 Sep 2025
Fair value Increased 2.15%Buoyed by resilient demand, rising hard disk drive pricing, improving storage sector fundamentals—especially from AI and cloud—and Seagate’s successful HAMR execution, analysts raised long-term revenue and margin expectations, prompting a slight increase in the consensus price target from $166.42 to $170.00.
Analyst Commentary
- Bullish analysts cite industry-wide tailwinds, including sustained tight supply, resilient demand, and rising hard disk drive pricing, supporting upward revisions to Seagate’s revenue projections into 2026.
- Improving storage sector fundamentals—particularly those driven by generative AI and cloud infrastructure—are expected to further boost demand for Seagate’s products, with bullish analysts raising targets in response to optimism from recent industry conferences.
- Seagate's advancements in heat-assisted magnetic recording (HAMR) and areal density are expected to unlock greater profitability, with analysts highlighting both successful execution and the company's path to structurally higher earnings per share and margins through 2028.
- Bearish analysts acknowledge short-term execution and customer spend strength, but anticipate a peak in quarterly EPS by late 2025, accompanied by rapid deceleration in shipment growth and flattening operating margins.
- The broader industry re-rating story, with analysts expecting continued "beat and raise" quarters on the back of strong nearline and cloud-driven demand, leaves shares positioned for further upside, though competitive dynamics with Western Digital are noted in several reports.
What's in the News
- Company completed the repurchase of 81,428,994 shares (33.44%) for $5,335.86 million under its ongoing buyback program, with no shares repurchased from March 29 to June 27, 2025.
- Issued earnings guidance for fiscal Q1 2026 with expected revenue of $2.50 billion, plus or minus $150 million.
- Launched global availability of up to 30TB Exos M and IronWolf Pro hard drives, utilizing HAMR technology and targeting scalable, high-density storage needs for AI and enterprise data centers.
Valuation Changes
Summary of Valuation Changes for Seagate Technology Holdings
- The Consensus Analyst Price Target has risen slightly from $166.42 to $170.00.
- The Discount Rate for Seagate Technology Holdings has fallen slightly from 8.10% to 7.90%.
- The Future P/E for Seagate Technology Holdings remained effectively unchanged, moving only marginally from 18.02x to 18.31x.
Disclaimer
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