Analysts expect Seagate's first-quarter revenue to climb 58%; Rosenblatt sees further earnings upside as the company's advanced hard drives gain scale.

  • Rosenblatt lowered its price target on Seagate to $1,100 from $1,400 but maintained a ‘Buy’ rating.
  • Morgan Stanley raised its STX price target to $1,200, citing improving hard disk drive fundamentals and a broadening customer base.
  • In the previous quarter, Seagate reported revenue of $3.63 billion and adjusted EPS of $5.71.

Seagate Technology (STX) shares surged more than 6% on Tuesday ahead of its fiscal first-quarter 2027 earnings report, as investors awaited fresh updates on demand for data-center storage and the company's outlook.

According to The Fly, Rosenblatt lowered its price target on Seagate to $1,100 from $1,400 but maintained a ‘Buy’ rating ahead of the results, scheduled for release after Tuesday's market close.

At the time of this writing, STX stock was trading around 5% higher.

Analyst Sees Greater Near-Term EPS Upside For Seagate

Rosenblatt analyst Kevin Cassidy attributed the reduced price target to sector-wide valuation multiple compression. The firm favors rival Western Digital (WDC) as a "relative catch-up opportunity”.

However, it sees greater near-term upside in Seagate's earnings per share (EPS) as its heat-assisted magnetic recording (HAMR) technology scales. The technology allows Seagate to increase the amount of data stored on hard drives, supporting its efforts to meet growing cloud storage demand.

Morgan Stanley raised its STX price target to $1,200 from $1,187 last week, maintained an ‘Overweight’ rating, and reinstated the stock on its Top Picks list. The firm cited improving hard disk drive fundamentals and a broadening customer base.

Street Expects STX Earnings To Nearly Triple

Analysts expect Seagate's fiscal first-quarter revenue to rise approximately 58% year over year to $4.15 billion, with adjusted EPS projected to jump 185% to $7.43, according to Koyfin.

That compares with the company's July guidance for revenue of $4.1 billion, plus or minus $100 million, and non-GAAP EPS of $7.30, plus or minus $0.20. In its previous quarter, Seagate reported revenue of $3.63 billion and adjusted EPS of $5.71, supported by strong cloud data-center demand.

At the time, CEO Dave Mosley said Seagate expected continued growth in demand for high-capacity storage as artificial intelligence (AI) applications generate increasing volumes of data.

Seagate's earnings release and management commentary will provide the next update on whether demand and profitability are progressing in line with the company's forecasts.

What Retail Thinks About STX Stock

On Stocktwits, retail investors’ sentiment around STX remained ‘bearish’ amid extremely high user participation.

STX stock retail sentiment on October 27, as of 11:30 a.m. ET | Source: Stocktwits

So far this year, STX stock has surged more than 135%. By comparison, the iShares Future AI & Tech ETF (ARTY), which holds the stock, has risen over 45% over the same period.

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