FINWIRES · TerminalLIVE
FINWIRES

Seagate Technology 'Stronger for Longer' on AI Demand, Pricing Strength, Morgan Stanley Says

By

Seagate Technology (STX) is "even stronger for longer," with Morgan Stanley reaffirming it as a "Top Pick" after fiscal Q3 results were driven by stronger data center demand, pricing strength and AI-driven HDD demand.

The investment firm said in a Wednesday note that the rising adoption of AI applications is boosting HDD demand from hyperscalers and additional growth opportunities emerging from neocloud and sovereign cloud customers.

Management also indicated that nearline capacity is effectively booked through June 2027 and expects sequential growth in revenue, profitability and cash flow for at least the next five quarters.

The brokerage lifted its long-term outlook. It is now projecting 2027 earnings per share of about $43 supported by stronger pricing, margin expansion and sustained free cash flow. Gross margins could surpass 50% earlier than expected and continue increasing beyond prior peak assumptions, according to the note.

Morgan Stanley has an overweight rating on the stock and raised its price target to $767 from $582.

Shares of Seagate Technology were up more than 14% in Wednesday trading.

Price: $661.95, Change: $+82.92, Percent Change: +14.32%

Related Articles

Wire

Brown-Forman, Pernod Ricard End Talks on Potential Combination

Brown-Forman (BF.A) and Pernod Ricard ended discussions over a potential business combination after failing to reach mutually agreeable terms."We intend to create long-term value for all stakeholders by focusing on our strategic and operational priorities," Brown-Forman said Tuesday in a statement. "This includes unlocking future growth by expanding our geographic footprint, continuing to build brands that resonate with consumers, and enhancing operational efficiency."In late March, the companies confirmed they were in talks, noting "there could be no assurance that any such agreement would be reached."Brown-Forman shares fell 2.9% in after-hours trading.

$BF.A$BF.B
Wire

Update: Visa Fiscal Q2 Adjusted Earnings, Revenue Rise

(Updates with share repurchase and dividend information in the last two paragraphs.)Visa (V) reported fiscal Q2 adjusted earnings late Tuesday of $3.31 per diluted share, up from $2.76 a year earlier.Analysts polled by FactSet expected $3.10.Revenue for the three months ended March 31 was $11.23 billion, up from $9.59 billion a year earlier.Analysts polled by FactSet expected $10.75 billion.In April, the company's board authorized a new $20 billion multi-year share repurchase program, it said.Visa also maintained its quarterly dividend at $0.67 per share, payable June 1 to holders on record as of May 12.

$V
Wire

BXP Q1 FFO Falls, Revenue Rises; Shares Drop After Hours

BXP Inc (BXP) reported Q1 funds from operations late Tuesday of $1.59 per diluted share, down from $1.64 a year earlier.Analysts surveyed by FactSet expected $1.58.Revenue in the three months ended March 31 rose to $872.1 million from $865.2 million a year earlier.Analysts polled by FactSet expected $843.1 million.The company expects FFO of $1.69 to $1.71 a share in Q2 and $6.90 to $7.04 a share in the full year, compared with the prior forecast of $6.88 to $7.04.Analysts surveyed by FactSet expect $1.72 in Q2 and $6.95 in the full year.BXP shares fell 4.6% in after-hours trading.

$BXP