Seagate Technology PLC (NASDAQ:STX) has hit a new all-time high, with its shares reaching $118.63. The data storage leader now boasts a market capitalization of approximately $25.14 billion. Analysts view the stock as fairly valued, trading with a price-to-earnings ratio near 16.66. This peak highlights a phase of solid performance for Seagate, driven by strong investor confidence and favorable market conditions for its storage solutions.
Year-to-date, Seagate’s stock has surged 38%, supported by a consistent dividend yield of 2.44%, marking 15 consecutive years of dividend payments. Over the past twelve months, the company’s stock has appreciated by over 27%, reflecting successful execution of growth strategies and adaptation to rising digital storage demands. Revenue growth in the last year was robust at 36.3%, underscoring Seagate’s expanding market presence.
Following its recent Analyst Day, several investment firms have revised their price targets upward. Morgan Stanley raised its target to $140, citing surging storage demand and Seagate’s technological edge as catalysts for potential EPS growth. The firm also pointed to Seagate’s healthy free cash flow and capital return programs as positives. Bank of America Securities raised its target to $135 while maintaining a Buy rating, optimistic about the company’s medium- and long-term prospects, especially with advances in Heat-Assisted Magnetic Recording (HAMR) technology.
Mizuho Securities set a new price target of $130, highlighting Seagate’s innovations that may give it an advantage over competitors like Western Digital (NASDAQ:WDC), as well as growth expected from expanding data centers driven by AI technologies. Earlier, Bank of America also set a $125 target, emphasizing confidence in Seagate’s projected revenue CAGR from fiscal 2025 to 2028. Cantor Fitzgerald maintained a Neutral rating with a $125 target, noting some investor uncertainty around growth forecasts but recognizing clarified financial guidance.
Overall, analysts are confident in Seagate’s strategic positioning, with HAMR technology and data center growth seen as pivotal to future expansion. Market watchers are eager to see if Seagate can achieve its ambitious goals and sustain its upward momentum in the evolving data storage landscape.