Seagate Technology Stock Is Heading 21% Higher, According to 1 Wall Street Analyst Firm
Seagate Technology (NASDAQ: STX) stock has rallied over the last year thanks to cyclical improvements in the data storage industry and expectations that rising demand for artificial intelligence (AI) could become a major performance catalyst. The company's share price is up 11% across 2024's trading and 54% over the last 12 months, and some on Wall Street think that the stock is heading even higher.
In a note published on March 26, Morgan Stanley raised its rating on Seagate stock from equal weight to overweight and raised its price target from $73 per share to $115 per share. Hitting Morgan Stanley's price target would mean a new all-time valuation high for Seagate and upside of roughly 21% from where shares are trading as of this writing.
Citing strong industry positioning, cyclical improvements for the space, and increasing demand tied to the rise of generative AI technologies, Morgan Stanley now thinks that Seagate's earnings for this year could come in between 25% and 30% higher than it had previously anticipated. Even better, it sees storage needs for artificial intelligence (AI) technologies becoming a longer-term tailwind.
Source Fool.com
