Seagate Technology Shares Could Soar On Cloud Storage Demand
Geoff Considine, Ph.D | Oct 20, 2021 13:40
As more and more of the world has moved online, data storage has become critical, and shares in Seagate Technology (NASDAQ:STX), which provides electronic data storage technology and solutions, has benefited from that.
The stock of the storage giant more than doubled from Oct. 30, 2020 (closing price of $47.82) to May 17, 2021 (closing price of $104.23).
However, since reaching the YTD high in mid-May, the shares declined 20.8% up to the FY Q4 2021 earnings report on July 21, 2021. STX closed at $82.60 on July 21, just slightly higher than the current price, even though the Q4 EPS exceeded the consensus EPS by 6%.
Going forward, the company’s growth market is enterprise-scale hard drives for the cloud, offsetting shrinking PC and consumer technology business lines. Cloud storage and data analytics platforms depend on mass-scale hard drives, providing Seagate with expanding market demand.
Seagate is also seeing growing demand for 9.8 ) relative to the higher-margin cloud data storage and analytics business, along with consideration of the bullish Wall Street consensus and the neutral market-implied outlook, I’m assigning a bullish rating on STX.
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