Why Analysts Are Raising Their Seagate Stock Price Targets Left and Right

After the blockbuster earnings report from data storage provider Seagate Technology Holdings plc (STX), multiple analysts have raised their price targets on its stock. The main reason is the company’s strong execution, reflected in its earnings growth, as well as the pricing power it is enjoying as the storage market remains tight. 

Citi analyst Asiya Merchant reaffirmed her “Buy” rating and raised the price target from $1,240 to $1,300. Merchant cited the company’s favorable pricing, favorable product mix, and continued ramp of its Mozaic4 hard drive storage platform designed for AI. It is seeing strong demand from hyperscalers, growing workloads, and data retention. 

Wedbush analyst Matt Bryson also reiterated his “Outperform” rating and raised the price target from $825 to $1,000, citing the company’s strong execution. Bryson also highlighted pricing power, which he believes is higher than Street expectations for two reasons: demand staying well above supply and price increases in the memory market leading to higher average selling prices and margins. 

Among the names praising Seagate, Evercore ISI analyst Amit Daryanani has pointed to pricing power, but has added that its HAMR-driven cost reductions are supporting margins. Daryanani has also reiterated an “Outperform” rating and a $1,000 price target. And that’s not all; more Wall Street analysts have shown their hyper-bullishness on Seagate through price target raises. 

After such applause following a stellar result, we take a closer look at Seagate now…

About Seagate Stock

Based in Singapore, Seagate Technology is a worldwide data storage company that develops and manufactures hard disk drives, solid-state drives, and other storage products for cloud, enterprise, and consumer use. The company uses Heat-Assisted Magnetic Recording (HAMR) technology, which uses a tiny laser diode to temporarily heat the disk platter during the writing process and provides unprecedented storage capacities. 

Its business is centered on building dependable, high-capacity storage systems that help power AI, digital media, and modern data centers. In addition, Seagate manages extensive manufacturing, supply chain, and product engineering operations to support global demand. The company has amassed a market capitalization of $171.41 billion.

Investors see Seagate as a big AI-storage winner. AI capacity building has been boosting demand for mass-capacity storage, and the company has been riding this wave with its HDDs. It is enjoying the benefits of a tight supply, giving it pricing power. Stronger-than-expected results and an upbeat outlook have also impressed investors, leading to a robust upsurge in its stock over the past year. 

Over the past 52 weeks, Seagate’s stock has gained 477.72%, while it is up 209.26% year-to-date (YTD). The company’s shares reached a 52-week high of $1,145 on June 18, but are down 25.6% from that level. 

Surprisingly, Seagate’s stock comes at a cheaper valuation than its peers. Its price-to-earnings (non-GAAP) ratio on a forward-adjusted basis stands at 21.23 times, which is a bit lower than the industry average of 22.31 times. 

What Was In Seagate’s Blockbuster Q4 Earnings?

Seagate’s fourth-quarter results for fiscal 2026 (quarter ended July 3) exhibited strong cloud data center demand and disciplined execution. The company’s revenue increased by 48.5% year-over-year (YOY) to $3.63 billion, surpassing the $3.49 billion Wall Street analysts had expected. Its non-GAAP gross margin grew from 37.9% to 52.7% over the same period. Seagate clocked in a $5.71 non-GAAP EPS, growing 120.5% YOY and higher than the Street-expected $5.10.

Looking ahead, the AI buildout is expected to keep raising demand in the memory market. This year, AI building is expected to create 363 Exabytes of additional storage (or about 18% of total expected capacity shipments). By 2028, AI-driven incremental HDD capacity demand is expected to account for about 43% of total shipments, and by 2030, that share could rise to roughly 58%.

This is important for Seagate as it stands on the cusp of a big opportunity with its HDDs. Following the release of its Q4 results, the company announced that it has sold out of its Exabyte-capacity hard drives until 2028 due to the AI boom. Seagate also considers itself well-positioned to address growing Exabyte demand through its Mozaic platform and differentiated HAMR technology roadmap. 

Wall Street analysts also expect Seagate’s bottom line to grow robustly. For the current fiscal year (fiscal 2027), profit is expected to increase by 83.2% annually to $26.84 per diluted share, followed by a 157.5% growth to $69.10 in the next fiscal year (fiscal 2028). 

What Do Analysts Think About Seagate’s Stock?

The memory maker has become a major hit on Wall Street as the AI surge has propelled its prospects, with analysts awarding it a consensus “Strong Buy” rating overall. Of the 26 analysts rating the stock, a majority of 22 analysts have given it a “Strong Buy” rating, one analyst rated it “Moderate Buy,” while three analysts are taking the middle-of-the-road approach with a “Hold” rating. The consensus price target of $1,028 represents a 19.3% upside from current levels. Moreover, the Street-high price target of $1,600 indicates a 85.6% upside.