Evercore ISI has initiated coverage on Seagate Technology Holdings (NASDAQ:STX), giving it an Outperform rating and a price target of $110, suggesting a potential 25% increase from its current share price.

This announcement led to a nearly 3% intra-day increase in the company’s shares. Evercore expressed optimism about Seagate and the hard disk drive (HDD) industry, citing growth drivers such as a cyclical recovery among Hyperscalers, advancements in Heat Assisted Magnetic Recording (HAMR) technology, a more disciplined HDD market, and a shift in capital allocation towards buybacks.

Evercore predicts that Seagate could achieve an earnings per share (EPS) of $10-12 by fiscal year 2027, indicating significant potential for stock price appreciation. For fiscal year 2025, Evercore expects Seagate to surpass consensus estimates by posting an EPS of over $5.00.

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