Seagate stock expected to hit $200 by 2025 due to strong industry demand and financials.

From Yahoo Finance: 2025-06-30 11:20:00

Seagate Technology (STX) stock has surged 63% in the past three months due to strong industry tailwinds, improved profitability, reduced debt, and increased cash flow. The company benefits from growing demand for mass-capacity storage driven by the digital shift towards cloud services and data center expansion for AI.

Seagate reported a 30.5% revenue increase and 81% jump in adjusted gross profit in the last fiscal quarter. The company has expanded gross margins for eight consecutive quarters and posted the third-highest operating margin in its history. Seagate’s supply discipline, build-to-order model, and dynamic pricing strategy have contributed to its profitability.

Seagate anticipates continued strong demand for its products, with the highest price target at $200, representing a 41% upside potential. The company’s 24TB and 28TB products are top revenue performers, and the introduction of Heat-Assisted Magnetic Recording (HAMR)-based Mozaic drives is expected to drive further growth. Demand from cloud providers and edge data centers is on the rise.

Seagate’s long-term outlook remains robust, with customer supply agreements extending into the first half of 2026. The company is diversifying manufacturing and supply chains to mitigate global challenges like tariffs. Financially, Seagate decreased debt to $5.1 billion, improved net leverage ratio to 2.1x, and increased free cash flow to $216 million in the March quarter. Wall Street analysts have a “Moderate Buy” consensus on Seagate.

Read more: Can Seagate Stock Hit $200 in 2025? What Investors Need to Know.