Cantor Fitzgerald upgraded Seagate Technology to Overweight, citing strong cloud storage demand. Seagate’s forecast for the current quarter fell slightly below expectations. The miss was attributed to slower enterprise growth and dilution from a higher stock price and convertible notes. However, Seagate plans to resume share buybacks and has strong demand from cloud providers.

Despite a 77% year-to-date gain, Cantor sees further upside potential for Seagate, raising its price target to $175. The firm believes the hard disk drive industry’s re-rating is just beginning, with a possible stock price of $250 in the coming years. Shares fell post-guidance miss, but Cantor views this as an entry point for investors.

Read more at Yahoo Finance: Cantor upgrades Seagate despite soft outlook on rising cloud demand