Key Stats for Seagate Stock
- Price change for Seagate stock in last 6 months: 183%
- $STX Stock Price as of Jul. 10: $910
- 52-Week High: $1145
- $STX Stock Price Target: $975
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What Happened?
Seagate (STX) stock extended its gains on Friday after Wells Fargo analyst Aaron Rakers issued a bullish new note on the data storage company.
Rakers rates the stock “Overweight” with a $1,100 price target, implying another 22% of upside from current levels. His reasoning comes down to demand. AI infrastructure buildouts are driving strong, lasting demand for high-capacity storage from cloud service providers.
Rakers believes Seagate’s upcoming Q4 earnings report, expected in early August, will help solidify long-term investor confidence and push the stock’s valuation multiple higher.
Wall Street currently expects Seagate to post $4.89 per share in earnings for that quarter, more than double what the company earned in the same period a year ago.
A big part of Rakers’ confidence comes from how locked in Seagate’s future revenue looks. Cloud companies and hyperscalers have signed procurement agreements that give Seagate strong multi-year visibility into demand for exabyte-scale hard disk drive storage.
Rakers expects that demand to keep accelerating over the next two years. On valuation, Seagate stock currently trades at around 31 times forward earnings, a level Rakers considers reasonable given the company’s position as a major beneficiary of the AI buildout.
Looking ahead, Rakers expects nearline hard drive shipment capacity, the kind used heavily in data centers, to grow at a sustained rate of more than 25% annually. He also expects average selling prices to climb at a mid-to-high single-digit pace.
Put together, he thinks these trends could help Seagate stock reach a new all-time high before the end of the year.
Wells Fargo isn’t alone in its bullish stance either. Despite Seagate stock’s big gains so far this year, the broader Wall Street consensus rating remains “Strong Buy,” with a mean price target of $981, implying more than 7% upside from current levels.
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What the Market Is Telling Us About Seagate Stock
Today’s rally reflects growing confidence that the AI infrastructure boom isn’t just a short-term story for storage companies like Seagate.
With long-term supply agreements already in place with major cloud customers, Seagate has unusually strong visibility into future revenue, which tends to earn it a premium from analysts even after a strong run.
For investors watching Seagate stock, the combination of durable demand, locked-in contracts, and continued analyst support suggests Wall Street sees more room for growth ahead, even after a year of significant gains.
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How Much Upside Does Seagate Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
