Jefferies Reiterates Buy on Seagate Technology PLC (STX)
Jeffries analyst, James Kisner, weighed in on Seagate Technology PLC (NASDAQ:STX) following the company’s 4Q pre-announcement.
The analyst notes that STX pre-announced revenues of $2.65 billion, beating its $2.3 billion guidance by $350 million. The analyst explains that the improvement in revenues is due to the heightened demand for HDD products, especially enterprise HDD products.
The analyst states, “Seagate positively announced FQ4 results driven chiefly by better-than-expected Enterprise HDD demand. Gross margin results were particularly encouraging, as was STX’s announcement that it expects to operate in its longer term gross margin range by CQ4 of this year.”
The analyst remains bullish on STX, reiterating a Buy rating for the company with a price target of $26.00.
James Kisner is ranked #3,203 out of 4,038 analysts. He maintains a 51% success rate with an average loss of (2.0%).