Cantor upgrades Seagate despite soft outlook on rising cloud demand

Investing.com-Cantor Fitzgerland upgraded Seaagate to the Impartial weight, saying that the laborious disk maker remains to be in a very good place to benefit from the excessive demand for cloud storage even when the corporate issued a little bit weaker than anticipated for the present quarter.

Seagate anticipated the September quarterly 2.50 billion {dollars} and a modified earnings of $ 2.30 per share, each of that are simply lower than the unanimity estimates amounting to $ 2.53 billion and $ 2.36, respectively.

Cantor mentioned Miss was as a result of slower development in her companies, that are linked to technological transformations such because the decline within the hamr drives, and to alleviate the value of Seagate and convertible notes.

Nevertheless, mediation referred to a number of positives. The entire margin is 38.8 % for 1 / 4 whose unanimity is at 37.2 %, and Seagate plans to renew shares resets, with the assistance of a lower in web monetary leverage, now at 1.8 occasions.

Cantor additionally highlighted the robust demand of superior cloud service suppliers and the continuing imaginative and prescient on orders extending to the second half of 2026.

The corporate raised its revenue expectations for 2026 to $ 11 per share of $ 10.60, in comparison with a consensus of $ 10.45, with a doubtlessly 12 greenback ups.

For the 2028 fiscal 12 months, Cantor sees earnings of as much as $ 16.00 if Seagate reaches its income targets.

Though the SEAGATE shares that achieve 77 % on an annual foundation, Cantor mentioned there’s a further subject for the upholstery establishment, and its not too long ago focused value raised to $ 175.

The corporate believes that re -classification of Disk Drive remains to be in its early phases, noting that shares can strategy $ 250 over the subsequent few years if the developments are steadfast.

The shares fell after the steering Miss, however Kanur The withdrawal might be an entry level for buyers.

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