Update shared on28 Sep 2025
Fair value Increased 13%Analysts have raised Seagate Technology’s price target from $170 to $192, citing strong AI-driven and cloud demand, industry-wide supply constraints enabling price increases, and adoption of advanced storage technologies, while noting some risk for slower growth past 2H 2025.
Analyst Commentary
- Bullish analysts cite strong and sustained demand from AI-driven workloads and cloud infrastructure as key drivers supporting higher revenue and profit forecasts, with materially improved outlooks since the start of 2025.
- Sector-wide tight supply in hard disk drives and NAND, extending lead times and facilitating industry-wide price increases, are viewed as enabling higher average selling prices and margin expansion for Seagate.
- Increased adoption and ramp up of advanced technologies such as heat-assisted magnetic recording (HAMR) is expected to give Seagate a competitive edge and support upward revisions in earnings estimates.
- Several analysts see the storage industry in the early stages of a multi-year profit cycle, with structurally improved industry profitability and the potential for further "beat/raise" quarters as demand for exabyte shipments outpaces supply growth.
- Bearish analysts acknowledge recent strong execution and cloud demand but caution that EPS and margin growth may decelerate after 2H 2025, highlighting potential risks of growth peaking and monitoring for signs that quarterly shipment growth could slow.
What's in the News
- Seagate completed the repurchase of 81,428,994 shares (33.44%) for $5,335.86 million under its previously announced buyback, with no shares repurchased in the latest tranche.
- The company provided guidance for fiscal Q1 2026, expecting revenue of $2.50 billion, plus or minus $150 million.
- Seagate announced the global availability of 30TB Exos M and IronWolf Pro hard drives, leveraging HAMR technology, targeting AI-driven data center and enterprise demand for higher storage density.
Valuation Changes
Summary of Valuation Changes for Seagate Technology Holdings
- The Consensus Analyst Price Target has significantly risen from $170.00 to $192.00.
- The Future P/E for Seagate Technology Holdings has risen from 18.31x to 19.47x.
- The Net Profit Margin for Seagate Technology Holdings has risen from 21.01% to 22.13%.
Disclaimer
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