Morgan Stanley cuts Western Digital target, raises Seagate amid HDD selloff
Morgan Stanley adjusted its price targets, lowering Western Digital (WDC) to $643 and raising Seagate (STX) to $1,200, citing HDD sector uncertainty and AI funding concerns. The firm sees an attractive buying opportunity and expects both companies to beat earnings expectations, maintaining Overweight ratings. WDC shares fell 21%, STX 25% in the past month.
How this was made
The 30-second read
Why it matters
The divergent target adjustments reflect differing views on each company's near‑term earnings setup and competitive positioning.
Market read
Analyst target changes provide fresh directional cues for WD and STX, potentially affecting short‑term trading decisions.
What to watch
Potential AI‑driven demand for high‑capacity storage and supply constraints could support prices.
Background
Morgan Stanley's research note revises price targets for the two leading HDD manufacturers amid a sector selloff tied to AI spending concerns.
Ticker impact
Morgan Stanley raised Seagate's price target to $1,200, highlighting attractive buying opportunity amid HDD selloff.
potential upside as investors price in the higher target
Analyst upgrade with a higher target provides a fresh bullish signal for the stock.
Market effects
Both target changes may influence broader HDD and storage equipment sector sentiment.
U.S. technology hardware market may see modest re‑rating.
Limited to investors tracking storage hardware; no immediate global macro effect.
Counterpoint
The HDD market could rebound faster than analysts expect, making the target cut overly pessimistic.
Key entities
- Research FirmMorgan Stanley
Equity research provider issuing the target revisions.
- CompanyWestern Digital
Leading HDD manufacturer receiving a target cut.
- CompanySeagate Technology
Leading HDD manufacturer receiving a target raise.
