Citi Raises Seagate Technology Price Target to $1,150

Citi analysts raised the price target on Seagate Technology Holdings Plc (NASDAQ:STX) from $740 to $1,150 on June 2, maintaining a Buy rating. The revision follows an upward adjustment in their estimates for the company's hard disk drive (HDD) segment.

Recommendation Change

Before: Price target $740, Buy rating. After: Price target $1,150, Buy rating.

Analyst Rationale

Citi analysts believe Seagate will benefit from growing demand for data storage, particularly from data center expansion and AI-related applications. Improved cost structure and higher margins also support the estimate increase.

Context

STX stock currently trades around $900, implying an upside of about 28% to the new target. Other analysts have mixed views; some see the stock as overvalued after recent gains.

What to Make of It

The target hike reflects Citi's confidence in Seagate's prospects, but investors should consider risks from competing storage technologies and demand fluctuations.