The Surge in Seagate Technology Stock Price Today

Seagate Stock Surges on Morgan Stanley Upgrade, Analysts Predict Strong Earnings and New Peak Valuation

Seagate Technology (STX) stock is experiencing a surge in trading, with a 9% increase in share price as of 3 p.m. ET on Tuesday. This growth is attributed to a note published by Morgan Stanley this morning, which upgraded its rating on Seagate from equal weight to overweight and raised its one-year price target from $73 per share to $115 per share.

Despite a 56% increase in the last year, Seagate stock is still down about 17% from its high. However, Morgan Stanley’s analysts believe that the storage hardware specialist will reach a new peak valuation in the near future. The firm predicts that Seagate will benefit from the recovery in the data storage market and its position in HAMR technologies, which will lead to stronger sales and earnings performance. Furthermore, they anticipate that demand related to the rise of generative AI will be a significant performance driver.

Seagate’s profitability could see substantial improvements with the data storage industry on an upswing and AI-related demand growing. Morgan Stanley’s analysts believe that Seagate’s earnings performance in the near term could exceed expectations by 25% to 30%. Additionally, the connection to the AI revolution may result in investors assigning higher valuation multiples to Seagate and other data storage stocks.

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