Investment Bank Wedbush Optimistic About Storage Stocks: Raises Price Targets for Seagate Technology (STX.US) and Western Digital (WDC.US) Ahead of Earnings Release

According to Zhitong Finance APP, prior to the upcoming quarterly earnings reports from Seagate Technology (STX.US) and Western Digital (WDC.US), investment bank Wedbush Securities has raised their target stock prices.

Wedbush analyst Matt Bryson raised the target price 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 his client report: "We believe Seagate's reported results will surpass overall market expectations (driven by profit margins), as we anticipate that a slight uptick in product prices, combined with improved product mix, will allow Seagate to exceed forecasts once again. Additionally, as new Long-Term Agreements (LTA) take effect, we expect Seagate to benefit from further increases in Average Selling Price (ASP) throughout 2027."

Bryson added: "Similar to Seagate, we also expect Western Digital to report results that exceed broad market expectations (given its relatively conservative gross margin guidance, there appears to be greater upside potential). That said, our model adjustments focus on shifting expectations for future years, as we are now more confident in higher ASP assumptions for fiscal year 2028."

Consensus among analysts is that Seagate, scheduled to announce results on July 28, will post fiscal Q4 earnings per share (EPS) of $5.08 and revenues of $3.49 billion. For Western Digital, which will report on August 5, the expected EPS is $3.30, with revenues of $3.7 billion.