Cantor Seagate despite soft expectations for the high demand for the cloud

Investing.com-Cantor Fitzgerland upgraded Seaagate to the Neutral weight, saying that the hard disk maker is still in a good position to take advantage of the high demand for cloud storage even when the company issued a little weaker than expected for the current quarter.

Seagate expected the September quarterly 2.50 billion dollars and a modified profits of $ 2.30 per share, both of which are just less than the unanimity estimates amounting to $ 2.53 billion and $ 2.36, respectively.

Cantor said Miss was due to the slower growth in her businesses, which are linked to technological transformations such as the decline in the hamr drives, and to alleviate the price of Seagate and convertible notes.

However, mediation referred to several positives. The total margin is 38.8 % for a quarter whose unanimity is at 37.2 %, and Seagate plans to resume shares resets, with the help of a decrease in net financial leverage, now at 1.8 times.

Cantor also highlighted the strong demand of superior cloud service providers and the ongoing vision on orders extending to the second half of 2026.

The company raised its profit expectations for 2026 to $ 11 per share of $ 10.60, compared to a consensus of $ 10.45, with a potentially 12 dollar ups.

For the 2028 fiscal year, Cantor sees profits of up to $ 16.00 if Seagate reaches its revenue goals.

Although the SEAGATE shares that gain 77 % on an annual basis, Cantor said there is an additional field for the upholstery institution, and its recently targeted price raised to $ 175.

The company believes that re -classification of Disk Drive is still in its early stages, noting that stocks can approach $ 250 over the next few years if the trends are steadfast.

The shares fell after the guidance Miss, but Kanur The withdrawal will be an entry point for investors.

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