Seagate stock rises on analyst price target upgrades

Seagate Technology stock climbed 2.4% in morning trading today to reach $691.28, following a series of price target increases from major Wall Street firms.

Bank of America raised its price target on the data storage company to $1,200 from $1,150 today while maintaining a Buy rating. The move follows similar action from Morgan Stanley on Tuesday, when that firm lifted its target to $1,200 from $1,187 and kept an Overweight rating.

Morgan Stanley also reinstated Seagate as its top pick in information technology hardware. The firm's analyst said hard-drive fundamentals are strengthening and forecast Seagate's upcoming September-quarter results to come in roughly 12% above Wall Street consensus.

The analyst pointed to hard disk drive spot prices running well above contracted rates as evidence of a supply-demand imbalance. Options markets are pricing in a move of approximately 6.6% around the company's October 27 earnings report.

The stock had been under pressure throughout October before the recent analyst activity.

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