"Bank of America argues that HDD supply remains tight because manufacturers aren't adding unit capacity, indicating a structural change where demand exceeds supply, allowing HDD makers to raise prices."
"Cantor Fitzgerald anticipates a strong quarter for Seagate, driven by sustained hyperscaler demand for Nearline HDDs and ongoing ASP strength linked to supply constraints and the transition to HAMR technology."
"Seagate competes in a three-player HDD oligopoly with Western Digital and Toshiba, posting a revenue of $2.83 billion in fiscal Q2 2026, reflecting a 22% year-over-year increase."
"Seagate shares have surged 115% year to date and 618% over the past year, trading at a trailing P/E ratio of 66x, which is considered high but justifiable if HAMR-led margin expansion continues."
Two major Wall Street firms increased their price targets for Seagate Technology to $700, driven by tight supply in the hard disk drive market and advancements in HAMR storage technology. Bank of America raised its target from $605, maintaining a Buy rating, while Cantor Fitzgerald increased its target from $650, labeling Seagate a top pick. Analysts believe that ongoing demand for Nearline HDDs and supply constraints will support strong performance, with Seagate's revenue and margins showing significant growth.
Read at 24/7 Wall St.
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