Seagate Technology’s (NASDAQ:STX) shares have surged to an all-time peak of $137.71, boosting its market capitalization to nearly $29 billion. This milestone reflects a remarkable year-to-date gain of over 59%, signaling robust investor confidence in the data storage giant’s strategic direction.
The company continues to reward shareholders with a steady dividend yield of 2.12%, having maintained a reliable dividend payout for 15 consecutive years. This latest stock price record underscores Seagate’s ability to adapt to evolving market demands and solidify its position among top competitors in the storage industry.
Following Seagate’s recent Analyst Day, several financial firms updated their outlooks. Morgan Stanley raised its price target to $140, emphasizing Seagate’s leadership in technology and the anticipated surge in storage needs. Mizuho Securities increased its target to $130, highlighting breakthroughs in Heat-Assisted Magnetic Recording (HAMR) technology that could give Seagate an edge over rivals like Western Digital (NASDAQ:WDC). Bank of America also lifted its price target to $135 while affirming a Buy rating, expressing confidence in Seagate’s plans to enhance areal density and control costs effectively.
Meanwhile, Cantor Fitzgerald held a Neutral stance with a $125 target, citing some investor uncertainty about Seagate’s projected revenue growth. The company forecasts a compound annual growth rate in revenue in the low to mid-teens range between fiscal years 2025 and 2028. Its financial goals include maintaining gross margins around 40% and operating expenses near 10% of revenues, with plans to return more than 75% of free cash flow to shareholders.
Among recent operational highlights, Seagate has completed qualification processes with three major cloud service providers, with expectations to add a fourth within the coming year. The company also aims to start mass production of 40TB hard drives by mid-2026. Analysts view these developments as strong indicators of Seagate’s potential for revenue growth and margin improvement, driven by demand from the expanding cloud sector and ongoing innovations in data storage technology.