Seagate Technology Holdings (NASDAQ:STX) is one of the best performing S&P 500 stocks in 2025. On December 17, Morgan Stanley analyst Erik Woodring raised the firm’s price target on Seagate to $337 from $270 with an Overweight rating on the shares. This decision was made as the firm’s 2026 IT Hardware strategy prioritized ‘cloud capex winners’ and product-cycle leaders, while flagging risks for hardware OEMs. Due to concerns over rising memory costs, the firm suggests being Underweight on memory-heavy names.
Furthermore, on December 2, Citi raised the firm’s price target on Seagate to $320 from $275 with a Buy rating on the shares. The firm made this decision based on a supply-and-demand balance in the memory sector, characterized by restricted production and consistent pricing strength. Citi highlighted that demand visibility now extends through 2027, largely fueled by the growth of unstructured data generated by AI tools.
In FQ1 2026, Seagate Technology achieved revenue of $2.63 billion, which represented a 21.3% year-over-year increase and beat analyst estimates by 3%. Non-GAAP EPS reached $2.61, which was 8.8% higher than consensus estimates. Despite the cyclical nature of the semiconductor industry, Seagate’s annualized revenue growth of 18.5% over the last two years indicates a strong demand acceleration relative to its five-year historical trend. Looking ahead to Q4, Seagate projects revenue at a midpoint of $2.7 and an adjusted EPS of ~$2.75, both of which exceeded Wall Street’s forecasts.
Seagate Technology Holdings (NASDAQ:STX) provides data storage technology and infrastructure solutions in Singapore, the US, the Netherlands, and internationally.
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Disclosure: None. This article is originally published at Insider Monkey.
