BMO analyst Keith Bachman maintained a Market Perform rating on Seagate Technology (NASDAQ:STX) and reduced the price target to $55 (from $58), which implies a downside of 7% from current levels.
Bachman noted, “We are lowering our FY2016 EPS estimate from $5.50 to $4.98, and we think integrating Samsung’s HDD business could add another $0.12-$0.15 to our FY2016 EPS estimates. We maintain our 10x-11x target multiple but move slightly higher within our multiple range, and thus are lowering our target price from $58 to $55. We continue to prefer WDC over STX. We believe that WDC will have a solid December quarter and a more positive tone on industry dynamics.”
Seagate Technology Public Limited Company designs, manufactures, and sells electronic data storage products in the Asia Pacific, the Americas, and EMEA countries.