Seagate Technology, Western Digital Seeing 'Clear Path'for Earnings Growth, BofA Securities Says
Idag, 17:51
11:51 AM EDT, 04/27/2026 (MT Newswires) -- Seagate Technology (STX) and Western Digital (WDC) are seeing a "clear path"for earnings growth as long-term contracts and tight hard disk drive supply improve visibility for both companies, BofA Securities said in a Monday note.
Demand for hard disk drives continue to outweigh supply, positioning original equipment manufacturers to raise prices, the brokerage said. BofA Securities also noted that the market's oligopoly remains intact, with low chances of new players entering the sector.
The heat assisted magnetic recording, or HAMR, technology is driving higher exabyte shipments for hard disk drives, while cutting costs per terabyte, BofA Securities added.
These factors could pave the way for Seagate Technology to hit earnings of $45 per share in 2026 and $33 Western Digital, the investment firm said.
BofA Securities raised its price target on Seagate Technology to $700 from $605 and Western Digital to $495 from $415, with buy ratings for both companies.
Price: 592.64, Change: +6.39, Percent Change: +1.09
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Seagate Technology, Western Digital Seeing 'Clear Path'for Earnings Growth, BofA Securities Says
Idag, 17:51
11:51 AM EDT, 04/27/2026 (MT Newswires) -- Seagate Technology (STX) and Western Digital (WDC) are seeing a "clear path"for earnings growth as long-term contracts and tight hard disk drive supply improve visibility for both companies, BofA Securities said in a Monday note.
Demand for hard disk drives continue to outweigh supply, positioning original equipment manufacturers to raise prices, the brokerage said. BofA Securities also noted that the market's oligopoly remains intact, with low chances of new players entering the sector.
The heat assisted magnetic recording, or HAMR, technology is driving higher exabyte shipments for hard disk drives, while cutting costs per terabyte, BofA Securities added.
These factors could pave the way for Seagate Technology to hit earnings of $45 per share in 2026 and $33 Western Digital, the investment firm said.
BofA Securities raised its price target on Seagate Technology to $700 from $605 and Western Digital to $495 from $415, with buy ratings for both companies.
Price: 592.64, Change: +6.39, Percent Change: +1.09
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