Overview
- Morgan Stanley raised its price target to $1,035 and kept an Overweight rating, a move that helped lift Seagate shares roughly 7% to near $931 on Monday, June 15.
- Seagate’s April 28 quarter showed an EPS of $4.10 and revenue of $3.11 billion, materially beating estimates and prompting management to boost Q4 EPS guidance to $4.80–$5.20 and long-term revenue growth to at least 20%.
- Company executives said most nearline drive capacity is already allocated through 2027 because large cloud providers and AI data centers are buying high-capacity storage at scale.
- A wave of broker upgrades has pushed some targets into the high hundreds or above $1,000 while the broader consensus target still trails the share price and a $1,000 level implies a roughly 54x forward P/E at current analyst EPS assumptions.
- Notable insider selling, concentrated institutional ownership, and sensitivity to hyperscaler capital spending create clear downside risks that could trigger sharp volatility even as the company redeems exchangeable notes and maintains a modest dividend.