Seagate’s AI Boost: Morgan Stanley Upgrades Rating, Predicts 21% Upside

1 Wall Street Analyst Predicts Seagate Technology Stock to Rise by 21%

Seagate Technology (STX -0.56%) has experienced a significant increase in its stock price over the past year due to improvements in the data storage industry and expectations of increased demand for artificial intelligence (AI). The company’s stock has risen by 11% in 2024 and 54% over the last 12 months, leading some investors to believe that it may continue to increase in value.

Investment analysts have taken notice of Seagate’s recent successes, with Morgan Stanley upgrading its rating on the company from equal weight to overweight. With a new price target of $115 per share, up from $73 per share, the potential upside for Seagate is around 21% from its current trading price.

The increasing demand for AI technologies is driving growth in the data storage industry, and Seagate’s positioning as a leader in this space is likely to benefit from this trend. Morgan Stanley believes that Seagate’s earnings for the year could be 25% to 30% higher than originally anticipated due to strong industry positioning and the growth of generative AI technologies.

Seagate operates in a cyclical industry, but current trends suggest that there may be an upturn on the horizon. As demand for data storage solutions increases and pricing trends improve, Seagate stands to benefit from an improvement in its earnings over the next few years. The growing role of AI in technology presents new opportunities for data storage solutions, positioning Seagate for potential growth in the future.

Overall, investment analysts see Seagate as a promising investment opportunity supported by its strong positioning in the industry and increasing demand for AI technologies. With continued advancements in technology and market trends, Seagate could be on track for significant growth in the coming years.

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