From Nasdaq: 2024-06-10 00:46:08

Seagate’s stock price jumped 6% on the news of better-than-expected margins in Q4. Peer Western Digital also saw a 4% rise. Seagate expects gross margin between 30-33% in Q4, up from 26% in Q3. Despite past inconsistencies, the company’s focus on HAMR products has driven recent gains.

With oil prices and interest rates impacting the market, Seagate faces the risk of underperforming the S&P 500 in the next 12 months. Valuation puts Seagate at $100 per share, a 3x revenues multiple. Revenue growth will benefit from a rebound in cloud demand and the shift to HAMR technology in storage products.

Investors have rewarded Seagate’s stock for its potential in HAMR technology, despite recent sales and earnings decline. However, the positives may already be priced in, considering the stock’s sharp rally. Comparisons to peers and historical returns reflect Seagate’s performance against market benchmarks. Invest with Trefis for market-beating portfolios and comprehensive price estimates.



Read more at Nasdaq: What’s Behind 65% Rise In Seagate Stock In A Year?