Mizuho has increased its price target for Seagate Technology (NASDAQ:STX) to $440.00 from $400.00 while retaining an Outperform rating on the stock. The updated target implies meaningful upside relative to the most recent share price of $371.76, with the stock trading close to its 52-week high of $383.88.
The firm’s revision follows Seagate’s December quarter results, in which the company reported revenue of $2.83 billion and diluted earnings per share of $3.11. Those figures topped consensus estimates cited in the report - revenue consensus of $2.70 billion and EPS consensus of $2.75. For the March quarter, Seagate has guided revenue of $2.90 billion and EPS of $3.40.
Mizuho highlighted the ongoing strength in nearline cloud demand as a central justification for the higher target. The bank noted that exabytes shipped in the December quarter rose 4% sequentially and 31% year-over-year. It expects data center demand to more than offset the usual March quarter seasonality for Edge IoT applications.
The company’s HAMR - Heat-Assisted Magnetic Recording - technology ramp is described as progressing as planned. Mizuho reported that all U.S. cloud service providers are qualified for Mozaic 3+ and that Mozaic 4+ shipments will begin in the March quarter. Average nearline drive capacities increased 22% year-over-year in the December quarter, and further capacity gains are expected in the current quarter.
On valuation metrics, Mizuho’s new price target equates to roughly 25.8 times the firm’s fiscal 2027 EPS estimate. The bank expects HAMR deployment to contribute to both top-line and bottom-line improvement in calendar year 2026. At the time of the update, Seagate was trading at a trailing price-to-earnings ratio of 48.42 and offering a dividend yield of 0.8%. The company has made dividend payments for 15 consecutive years and operates in the Technology Hardware, Storage & Peripherals industry.
Seagate’s fiscal Q2 2026 report showed EPS of $3.11, which the company reported as exceeding certain analyst expectations. The article includes two sets of analyst comparisons: in one instance EPS topped a cited analyst expectation of $2.75, and in another instance the EPS was reported as surpassing an analyst expectation of $2.79. Revenue for the quarter was reported at $2.83 billion, which exceeded an anticipated $2.73 billion in one instance and the $2.70 billion consensus in another. The company reported a 21.5% revenue increase, and elsewhere the quarter was described as supported by strong demand in the data center market and a 26% year-over-year increase in exabyte shipments; Mizuho’s own commentary referenced a 31% year-over-year exabyte increase for the December quarter.
Analysts at other brokerages also adjusted their outlooks following the quarter. BofA Securities raised its price target to $450 while maintaining a Buy rating. Morgan Stanley lifted its target to $468 and kept an Overweight rating. Evercore ISI moved its target to $450 and maintained an Outperform rating. These firms cited the company’s strong quarterly performance and constructive guidance for the upcoming quarter as reasons for their revisions.
Seagate’s reported annual diluted EPS stands at $7.81, while the article states analysts forecast $12.15 for fiscal year 2026. Mizuho’s commentary links expected HAMR-driven improvements to the firm’s fiscal 2027 projections and its rationale for the higher target multiple.
Overall, the combination of better-than-expected quarterly results, accelerating nearline capacity gains, HAMR qualification with major U.S. cloud providers, and positive analyst revisions underpins the more bullish valuation outlook from Mizuho and other brokerages. Investors should note the multiple analyst comparisons and slightly varying consensus figures referenced across the company report and brokerage notes.