Financial news outlet reports that ahead of the upcoming quarterly earnings reports from Seagate Technology PLC (STX.US) and Western Digital (WDC.US), investment bank Wedbush Securities has raised their price targets.
Wedbush analyst Matt Bryson increased the price target for Seagate from $825 to $1,000, and for Western Digital from $540 to $650. He maintains an "Outperform" rating on both stocks.
Bryson wrote in a note to clients: "We believe Seagate will post results exceeding consensus expectations (driven by margins), as we anticipate that slight product price increases combined with an improved product mix will allow Seagate to beat forecasts again. Additionally, with new long-term agreements (LTAs) taking effect, we expect Seagate to benefit from further average selling price (ASP) increases throughout 2027."
Bryson added: "Similar to Seagate, we expect Western Digital to also report results surpassing consensus expectations (appearing to have more room for a beat given its more conservative gross margin guidance). However, likewise, the focus of our model adjustments is on the shift in expectations for future years, as we feel more confident in higher ASP assumptions for fiscal year 2028."
Analysts generally expect Seagate, which is scheduled to report earnings on July 28, to post fourth-quarter earnings per share (EPS) of $5.08 on revenue of $3.49 billion. Western Digital, which will report on August 5, is expected to post EPS of $3.30 on revenue of $3.7 billion.
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