BofA Sees 54% Upside for Seagate After Blowout Quarter, Defying Memory Rout
STX has more than doubled off its 52-week low of $138.3.
Summary
Seagate's fiscal Q4 crushed expectations with $3.63B revenue and $5.71 EPS, but the real story is the contrast with the memory sector's 30% July rout. While peers like SanDisk (SNDK) are down over 55% from highs, Seagate shares rose 1.5% as BofA reiterated a Buy with a $1,150 target—54% above Tuesday's close. The analyst highlighted build-to-order contracts extending through fiscal 2027 and nearline capacity already committed into 2028, giving unusual demand visibility. Management guided fiscal Q1 revenue to ~$4.1B and sees fiscal 2027 growth exceeding 34%, directly countering fears of an AI infrastructure spending peak. This follows yesterday's earnings release and adds fresh analyst conviction and relative strength data that traders can act on.
At the time of this announcement, STX was trading at $759.93 on NASDAQ in the Technology sector, with a market capitalization of approximately $170.4B. The 52-week trading range was $138.30 to $1,145.00. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.