Seagate Price Target Lifted by Bank of America Citing Robust HDD Demand

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Bank of America has increased its price target for Seagate Technology Holdings PLC to $1,200 from $1,150, maintaining a Buy rating. The financial institution points to robust hard disk drive demand surpassing long-term projections. For the fiscal first quarter of 2027, the bank forecasts revenue of $4.2 billion and earnings per share of $7.60, both exceeding Wall Street expectations. Revenue per terabyte is anticipated to jump roughly 22% year over year. Driven by strong nearline HDD orders and favorable pricing, the firm raised its fiscal 2027 revenue forecast to $18.7 billion and adjusted its earnings-per-share projection to $36.53. The updated $1,200 valuation is anchored on 16 times estimated fiscal 2028 earnings per share of $76.24.

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Bank of America (BofA) raised Seagate's price target from $1,150 to $1,200, citing strong demand for hard disk drives (HDDs). FY Q1 2027 revenue is projected at $4.2 billion and EPS at $7.60, beating the upper end of guidance. Nearline HDD demand, driven by data centers and cloud storage, is expected to grow over 20% annually, leading performance growth.

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BofA's upward revision is based on explosive nearline HDD demand from data centers and strong pricing forecasts showing a 22% year-over-year increase in revenue per terabyte. Margin improvements are expected through the transition to HAMR technology, though securing production yields remains a variable.

The bullish scenario is achieving FY 2027 revenue of $18.7 billion driven by sustained data center demand, while the bearish scenario is growth limitation due to production yield disruptions. Investors should monitor profitability per terabyte and production volume trends.

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