
STX Stock Forecast & Price Target
STX Analyst Ratings
Bulls say
Seagate Technology Holdings has demonstrated significant revenue growth, with Data Center revenue reaching $2.1 billion, reflecting a year-over-year increase of 34% and now constituting 80% of total revenue, driven by robust demand from hyperscale cloud providers. The company reported a notable increase in non-GAAP gross margin to a record 40.1%, along with an operating margin rise of 280 basis points quarter-over-quarter to 29%, indicating strong operational efficiency. Furthermore, the successful rollout of the HAMR Mozaic platform, with over 1 million drives shipped and accelerated adoption among major cloud service providers, suggests a promising outlook for continued revenue growth and market dominance.
Bears say
The financial analysis indicates a negative outlook for Seagate Technology Holdings, primarily driven by a significant decline in the Edge/IoT segment, which experienced an 11% quarter-over-quarter and 12% year-over-year decrease in revenue to $515 million due to decreased consumer and client demand. Although there was positive performance in non-GAAP EPS, which surpassed expectations, the overarching concern remains the softness in key market segments that could impact future earnings stability. Furthermore, while management's strategy to limit inventory builds and enhance order visibility reflects sound operational discipline, it does not mitigate the risks associated with falling demand trends and industry challenges faced by the data storage market.
This aggregate rating is based on analysts' research of Seagate Technology Holdings PLC and is not a guaranteed prediction by Public.com or investment advice.
STX Analyst Forecast & Price Prediction
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