"Bernstein's argument is clean and unambiguous. TurboQuant should have 'zero impact' on hard disk drive demand and 'negligible impact' on NAND demand. The selloff creates an attractive entry point for Seagate, contends the firm."
"The damage was swift. STX closed down 8.00% on March 27 after investors interpreted Google's TurboQuant AI model as a potential demand killer for memory and storage. The stock has now fallen -10.13% over the past week."
"Bernstein's $620 target sits well above current trading levels - a significant premium even to the analyst consensus target of $477.61 and the broader 'Moderate Buy' consensus from 24 analysts with an average 12-month target of $447.35."
Bernstein increased Seagate Technology's price target to $620 from $500, maintaining an Outperform rating. The firm argues that the recent TurboQuant-driven selloff is an overreaction, asserting that it has minimal impact on hard disk drive demand. Bernstein believes the dip presents a buying opportunity, supported by strong fundamentals and demand from cloud computing. JPMorgan also initiated coverage with an Overweight rating and a $525 target, citing pricing strength in an oligopolistic market. Seagate's stock has fallen significantly, but Bernstein's target remains well above current levels.
Read at 24/7 Wall St.
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