In case you missed it, Benchmark raised its price target today to $70 and maintained a Buy.
If you don't think that means much, please note based on recommendation performance according to Tipranks, the Benchmark Analyst ranks in the top 1% among all Analysts, has a 75% success rate on his 50 STX recommendations with an average 29% one year gain. Also, the Benchmark Analyst worked in the industry at STX, and is only one of three Analysts, another is Seagate's banker Katy Huberty, out of 27 with a Buy on STX which is up 42% since the end of July.
Benchmark (Buy) raises Seagate's (NASDAQ:STX) price target from $60 to $70 expecting a continuing enterprise recovery and "sequential improvements" in the June quarter...
Benchmark (Buy) raises Seagate's (NASDAQ:STX) price target from $60 to $70 expecting a continuing enterprise recovery and "sequential improvements" in the June quarter...
seekingalpha.com
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More problems for Western Digital as they announced late Wednesday (Investors Business Daily) that chemical contamination of a material used in its manufacturing processes has occurred and is impacting production at two NAND flash memory fabrication plants in Japan. It runs those plants in a joint venture with Kioxia. This will drive NAND chip prices to go even higher.
What this means for Seagate is a competitive advantage as the cost differential to hard drives widens. This translates into greater compelling value for Seagate storage solutions.
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Former Seagater and long time drive industry Analyst at Benchmark raises Seagate to Buy with $60 price target. Notes improving picture for margins and enterprise segment.
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Interesting customer experience for you here. I know this is one of those old companies, with online backup of cloud. But I'm a millennial in my 20's who uses the HDD 2TB hard drive for physical backup. It stopped working after 2 years, and I only had one year warranty. But I called them anyway, and they shipped me a brand new one, after some trouble shooting. I just had to pay $20 shipping and ship the old defected one back, which again, we tried to troubleshoot but could not figure out why it didn't work. Great customer service! That's what lead me to consider investing here. And if the coronavirus offers another 10% discount or more, this a pretty nice dividend and low valuation for me to start a position. Just some qualitative insight from an actual paying customer. I in real life have loyalty to brands with great customer service, and this experience says so. No disagreeing with me or trying to push me away, treated me fantastic!
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FYI, the Yahoo board police are suppressing a post I have been trying to make about the poor track record of the Analyst who downgraded the drive stocks today. See WDC board for details.
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Yesterday's sell off was due to a combination of some profit taking and a couple of Analysts, one of which is at sell, whining about operating leverage. It was probably a set up so some hedge funds traders could short the stock. FYI, not the first time that the sleazebags at Goldman have pulled this scam.
They ignored that fact that Seagate guided up for FY20, expects 2-6% long term top line growth, and increased the dividend. FYI, the Street has STX revenue dropping in FY20 & FY21.
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Today, Seagate announced the world’s first functioning 16TB enterprise hard drive. It's based on heat-assisted magnetic recording (HAMR) technology. Ship dates are pending and they plan to build 20TB+ drives by 2020.
"HAMR uses a new kind of media magnetic technology on each disk that allows data bits, or grains, to become smaller and more densely packed than ever, while remaining magnetically stable. A small laser diode attached to each recording head heats a tiny spot on the disk, which enables the recording head to flip the magnetic polarity of each very stable bit, enabling data to be written."
I don't get it. Why is $STX getting a forward PE of 15 while $WDC is only getting 10? Is Seagate up for sale?
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Seagate Tech says on Morgan Stanley conference call that company expects results to be at low end of guidance ranges (95.51 -4.58) Forecasting $8.00 vs. $8.79
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On October 6th Morgan Stanley Analyst and Cramer favorite, Katy Huberty, downgraded STX to hold. Since then STX is up 31% and up 69% this year.
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The analyst community is not always right or are they all in synch. But looking at their research reports can be a harbinger for things to come.
Stifel Nicolaus lifted their price target on Seagate from $120.00 to $125.00. Argus boosted their price target on Seagate from $105.00 to $130.00. Mizuho boosted their price objective on shares of Seagate from $92.00 to $110.00.
MarketBeat presently has a consensus rating of "Buy" and a consensus price target of $108.65.
Twelve research analysts have rated the stock with a hold rating and twelve have given a buy rating to the stock. Although Seagate has been down based on announcing that they planned to be on the low end of their guidance for this quarter, Seagate is still holding to their yearly financial forecasts.
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On the Western Digital Quarterly Earnings call this past week, CEO, David Goeckeler, shared the numbers of the 'Chia Effect' on hard disk drive revenues and here is his quote:
"I think the first week of it last quarter, probably a couple $100 million of upside there in the quarter due to Chia."
This added demand is kicking up drives prices which is creating a great opportunity for the next several quarters and Seagate is capitalizing on it.
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People just realizing now that this is a cloud play? Who do you think has been buying the HDD for the past 5-years? total stat storage shipped has grown dramatically, although declining price per hasn't made it evident. No start up new HDD manufacturers as the tech is insane to build from scratch. STX management and other HDD Competitors know this; that's why they refuse to manufacture HDD in China. They're going to print money for another 10-years.
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Seagate expanded their Lyve Cloud solution today with an announcement of integrated compute capabilities. This is a very exciting partnership for Seagate with Zadara to provide a cloud on-demand solution for storage and compute. This is addressing the growing market for edge cloud services that can be more cost effective than the public cloud vendors for large petabyte (PB) deals. Seagate is clearly expanding from being the leading hard drive company to become a leading systems solution company in the cloud.
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Good news and the price drops...what is the deal with that?
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Just added to an already large position. This is a HIGHLY profitable company, selling near book value and incredibly cheap PEs with a BIG dividend. Memory is key for all technology, but especially data centers, which is only growing and growing.Buying on dips and holding for years.
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Hard to find a better technology company that pays such nice dividend & has stronger buybacks.
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Industry research firm Trendfocus just published quarterly numbers on the data storage market and 2Q 2021 is projected to be 67 million HDDs shipped. That's a very strong number coupled with significantly higher average selling prices. Clearly the market for nearline drive capacity is growing significantly. As Mark Twain was once quoted "The report of my DEATH was an exaggeration!"
upgrades coming, only down from negative sentiment of trading day. Great numbers, price targets going up.
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This is probably pretty good news for STX. Cloud IT spend continues to grow at double digits.
International Data Corporation's (IDC) Worldwide Quarterly Cloud IT reported vendor revenue from sales of infrastructure products (server, storage and Ethernet switch) for cloud IT grew 11.4% YOY to $14.5 billion in Q1'19.
If you don't think that means much, please note based on recommendation performance according to Tipranks, the Benchmark Analyst ranks in the top 1% among all Analysts, has a 75% success rate on his 50 STX recommendations with an average 29% one year gain. Also, the Benchmark Analyst worked in the industry at STX, and is only one of three Analysts, another is Seagate's banker Katy Huberty, out of 27 with a Buy on STX which is up 42% since the end of July.
https://seekingalpha.com/news/3653547-seagate-analysts-adjust-targets-after-earnings-show-continuing-enterprise-recovery?mail_subject=stx-wdc-seagate-analysts-adjust-targets-after-earnings-show-continuing-enterprise-recovery&utm_campaign=rta-stock-news&utm_content=link-3&utm_medium=email&utm_source=seeking_alpha
What this means for Seagate is a competitive advantage as the cost differential to hard drives widens. This translates into greater compelling value for Seagate storage solutions.
They ignored that fact that Seagate guided up for FY20, expects 2-6% long term top line growth, and increased the dividend. FYI, the Street has STX revenue dropping in FY20 & FY21.
"HAMR uses a new kind of media magnetic technology on each disk that allows data bits, or grains, to become smaller and more densely packed than ever, while remaining magnetically stable. A small laser diode attached to each recording head heats a tiny spot on the disk, which enables the recording head to flip the magnetic polarity of each very stable bit, enabling data to be written."
#computing #technology
Stifel Nicolaus lifted their price target on Seagate from $120.00 to $125.00. Argus boosted their price target on Seagate from $105.00 to $130.00. Mizuho boosted their price objective on shares of Seagate from $92.00 to $110.00.
MarketBeat presently has a consensus rating of "Buy" and a consensus price target of $108.65.
Twelve research analysts have rated the stock with a hold rating and twelve have given a buy rating to the stock. Although Seagate has been down based on announcing that they planned to be on the low end of their guidance for this quarter, Seagate is still holding to their yearly financial forecasts.
"I think the first week of it last quarter, probably a couple $100 million of upside there in the quarter due to Chia."
This added demand is kicking up drives prices which is creating a great opportunity for the next several quarters and Seagate is capitalizing on it.
https://www.storagenewsletter.com/2021/07/14/67-million-hdds-expected-to-ship-in-2q21-with-all-global-figures-up/
International Data Corporation's (IDC) Worldwide Quarterly Cloud IT reported vendor revenue from sales of infrastructure
products (server, storage and Ethernet switch) for cloud IT grew 11.4% YOY to $14.5 billion in Q1'19.