5. Seagate Technology Holdings plc (NASDAQ:STX)
Stock Price as of August 9: $96.28
Average Analyst Price Target Upside as of August 9: 29.83%
Seagate Technology Holdings plc (NASDAQ:STX) is an American data storage company known for its significant contributions to the data storage industry. The company was founded in 1978 as Shugart Technology. It has a rich history of innovation, especially in the development of hard disk drives (HDDs). Seagate’s (NASDAQ:STX) first product, the 5.25-inch ST-506 HDD with a 5-megabyte capacity, revolutionized the industry and set the stage for the company’s dominance in the market.
Over the years, Seagate (NASDAQ:STX) expanded its market presence through strategic acquisitions, including Control Data Corporation’s Imprimis division in 1989, Conner Peripherals in 1996, Maxtor in 2006, and Samsung’s HDD business in 2011. These acquisitions strengthened the company’s position as a leader in the HDD market.
Seagate’s (NASDAQ:STX) product portfolio includes a wide range of HDDs and solid-state drives (SSDs) designed for various applications. The company offers products under different brand names such as Barracuda, Firecuda, Ironwolf, Skyhawk, and Exos, catering to general usage, gaming, network-attached storage (NAS), surveillance, and enterprise data centers.
The company has also been at the forefront of technological advancements as it introduced some industry-firsts like the 7,200 RPM Barracuda HDD, the 10,000 RPM Cheetah HDD, and the first 3 TB HDD. Its commitment to innovation also applies to its recent developments, which include the demonstration of the industry’s first HDD with a non-volatile memory express (NVMe) interface and its entrance into the object storage business with the introduction of CORTX.
On July 24, Morgan Stanley analyst Erik Woodring increased the target price for Seagate’s (NASDAQ:STX) stock from $115 to $133 and maintained an Overweight rating. Woodring’s updated price target suggests that the company’s stock could rise significantly. According to the firm’s new forecast, the stock could see an increase of 33% in the fiscal year 2025 and 40% in the fiscal year 2026 compared to what analysts currently expect.
The analyst pointed out that the stock is likely to benefit from strong supply and demand dynamics in the HDD market. As demand for HDDs continues to grow and supply remains strong, it will likely drive up prices and improve The company’s profit margins. This optimistic outlook is why Woodring believes there is further potential for the stock to increase in value.
Mizuho Securities analyst Vijay Rakesh also keeps a bullish stance on Seagate’s (NASDAQ:STX) stock as he maintained a Buy rating on the company with a $125 price target on July 25. He expects the company to boost profitability through better pricing and cost cuts. Rakesh noted its strong demand outlook and significant data shipments, credited to new products and advancements in Heat-Assisted Magnetic Recording (HAMR) technology. He expects continued recovery and growth.
As of August 9, Seagate (NASDAQ:STX) has been covered by 24 analysts and their average price target of $125 represents a nearly 30% upside to the company’s stock price at current levels. This brings the company to our list of best computer hardware stocks to buy.
