May 21, 2024 1:09 pm
Wall Street Analyst Predicts Seagate Technology Stock to Increase by 21%

Seagate Technology (STX -0.56%) has experienced a significant rally over the past year, driven by improvements in the data storage industry and anticipation of increased demand for artificial intelligence (AI) technology. The company’s share price has risen by 11% since the beginning of 2024 and climbed by 54% over the last 12 months. This positive momentum has some investors on Wall Street believing that the stock has the potential to continue rising.

Morgan Stanley recently upgraded its rating on Seagate stock from equal weight to overweight, raising its price target from $73 to $115 per share. If Seagate were to meet Morgan Stanley’s price target, it would reach an all-time high valuation and provide an upside of approximately 21% from its current trading price. This upgrade reflects Morgan Stanley’s belief that Seagate is well-positioned in the industry and stands to benefit from cyclical improvements, as well as increased demand due to advancements in AI technologies.

The data storage market is known to be cyclical, with demand and pricing trends fluctuating over time. Currently, Seagate appears to be in a favorable position with tailwinds supporting its growth. Morgan Stanley anticipates Seagate’s earnings for the year to be 25% to 30% higher than previously estimated, with potential AI-related storage needs providing a long-term boost.

Seagate could be entering a period of significant growth as demand for AI technology continues to rise. While the exact impact of AI on Seagate’s business remains uncertain, the overall trend suggests that it is well-positioned for success in this rapidly growing sector.

Investors who are considering adding Seagate Technology (STX -0.56%) stock to their portfolios should carefully evaluate their investment goals and risk tolerance before making any decisions. As with any investment opportunity, there are risks involved that could potentially result in significant losses.

However, if you are looking for a promising investment opportunity in the tech industry, Seagate could be worth considering due to its positioning within the data storage market and anticipated benefits from AI technologies.

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