Seagate Technology (STX) PT Raised to $200 at Loop Capital

(Updated - June 9, 2025 9:54 AM EDT)

Loop Capital analyst Ananda Baruah raised the price target on Seagate Technology (NASDAQ: STX) to $200.00 (from $135.00) while maintaining a Buy rating.

The analyst comments "n February 2024 in tandem with Loop Capital Supply Chain Analyst John Donovan we made a seminal structural call that HDD GMs would expand to 35% - 40% exiting CY2025 (12 Yrs Later… Are STX & WDC HDDs $30B Equities Hiding In Plain Sight?). We all know this is now ahead of schedule. Now using John Donovan’s updated work (Nearline Demand Surging – It Is HAMR Time - Finally) and data provided at STX & WDC’s recent Analyst Days we’re making the next leg of our call, raising our STX PT to $200 (from $135) and WDC to $75 (from $60). We also note that each could ultimately exceed these ranges should 1. They achieve stronger EPS (entirely possible) and 2. They experience P/E expansion beyond 17x (Figure 9). Valuation data is very instructive when considering L-T potential (Figure 9). We believe that STX & WDC could trade to 13x – 17x P/E (ultimately) if our thesis plays out and one could make an argument for a stronger multiple at some point (say > 20x)… say if STX (&/or WDC) achieves it’s 10% -15% revenue targets. In Figure 9 we provide a screen of current F500 companies with key metrics similar to STX & WDC (5%+ revenue growth, 25%+ OM and 5%+ FCF yield). As can be scene, currently the median P/E is 13x, the average is 17x… and companies that have STX & WDC’s target metrics are trading at >20x. The case for a premium P/E is that HDDs are a critical duopoly that is essentially non-replicable. And critical because if STX & WDC were to disappear… the world stops working the way we are used to because Hyperscale stops working as we are used to; which means internet stops working the way we are used to."

You May Also Be Interested In