Seagate Soars on Morgan Stanley Upgrade: Investors Take Notice as Stock Price Surges

The Surge in Seagate Technology Stock Price Today

On Tuesday, Seagate Technology (STX) stock is experiencing a 9% increase in share price as of 3 p.m. ET, following a note published by Morgan Stanley this morning that upgraded its rating on Seagate from equal weight to overweight. The analysts also raised their one-year price target on Seagate stock from $73 per share to $115 per share.

Despite a 56% increase in the last year, Seagate stock is still down about 17% from its high. However, Morgan Stanley’s coverage suggests that they believe the storage hardware specialist will reach a new peak valuation in the near future. The firm predicts that Seagate will benefit from the recovery in the data storage market and its position in HAMR technologies, which will lead to stronger sales and earnings performance. Furthermore, they anticipate that demand related to the rise of generative AI will be a significant performance driver.

As the data storage industry continues to grow and AI-related demand increases, Seagate’s profitability could see substantial improvements. Morgan Stanley’s analysts believe that Seagate’s earnings performance in the near term could exceed expectations by 25% to 30%. Additionally, the connection to the AI revolution may result in investors assigning higher valuation multiples to Seagate and other data storage stocks.

Investors should keep an eye on Seagate as it navigates through this growth period and takes advantage of its position in HAMR technologies and AI-related demand to drive stronger sales and earnings performance.

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