Seagate Technology (STX): CES Takeaways - RBC

RBC Capital analyst, Amit Daryanani, reiterated his Outperform rating on shares of Seagate Technology (NASDAQ: STX) after attending CES and meeting with the company.

Key takeaways:
1) Focus remains on benefiting from data creation, that should remains robust (1ZB
data creation over next few years) and provide capacity demand for both HDD & NAND
2) While consumer facing products will likely have SSD (Drones, VR machines, etc) this will create need for large amounts of data storage on the back-end where HDD will be crucial
3) Restructuring efforts should drive higher margins over next few quarter
4) STX continues to focus on higher margin and differentiated solutions (we think TAM was ~116-118M units vs. expectations of 111M)
5) STX is focused on higher margin drives rather than winning in lower-margin PC business

No change to the price target of $40.00

For an analyst ratings summary and ratings history on Seagate Technology click here. For more ratings news on Seagate Technology click here.

Shares of Seagate Technology closed at $39.05 yesterday.

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