Seagate: HAMR Is Delivering Faster Than I Expected

The Curious Analyst 5.03K Followers Follow Summary I reiterate my Strong Buy on Seagate Technology, raising the price target from $1410 to $1624. The main growth drivers are continued AI data center storage demand, the Mozaic and HAMR product cycle, operating leverage, and the improving balance sheet. STX now trades at approximately 25.8x FWD non-GAAP P/E, compared with about 56.9x in my previous update. I arrive at my price target by applying a 50x multiple to $32.47. The main risks are margin normalization, execution problems during the Mozaic ramp, and continued valuation compression. JHVEPhoto/iStock Editorial via Getty Images Investment Thesis I am reiterating my Strong Buy rating on Seagate Technology ( STX ) while increasing my price target from $1410 to $1624 per share. My observation is that STX is among the least affected stocks within This article was written by The Curious Analyst 5.03K Followers Follow My background is in Financial Engineering and I have long since been interested in analyzing strong solid companies with a rare financial Profile. My primary area of specialization is in quantamental analysis, where I use a combination of data driven models and fundamental research. My approach is centered on a structured process that combines top-down screening with bottom-up company specific analysis .I write on to share ideas with a wider audience and also learn more about companies and other analysts. My goal is to make unique ideas & research accessible to retail and professional investors alike, while maintaining analytical depth and a clear investment thesis.Associated with another author Kennedy Njagi Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in STX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.