Morgan Stanley names Seagate Technology as the top pick, with the stock soaring 7.5%

2026-04-06 19:07:48

Investing.com – Seagate Technology (NASDAQ:STX) shares rose 7.5% on Monday. Previously, Morgan Stanley named the company a top pick and raised its price target from $468 to $582. The stock closed on Friday at $429.36.

Morgan Stanley analyst Erik Woodring maintained a Buy rating for the stock, while substantially raising the price target. The new target implies 35% upside from the Friday close.

“Our latest survey shows that demand for hard disk drives continues to strengthen, and our supply-demand tracking indicates shortages will persist through the 2028 calendar year,” Woodring said. “Price per TB is also well above our expectations, which will drive our profit margins and earnings per share further beyond market consensus.”

The analyst raised expectations for both Seagate Technology and Western Digital, citing improving conditions in the hard disk drive market. According to Morgan Stanley’s analysis, supply-demand dynamics suggest potential shortages may continue through the 2028 calendar year.

Woodring noted that pricing per TB is above earlier expectations, which is expected to push profit margins and earnings per share higher than market consensus forecasts.

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