Morgan Stanley raised Seagate’s price target to $1,035 from $767 and kept an Overweight rating, citing HDD shortages through 2028 and treating Seagate as its top AI-exposure pick. The firm sees demand growing 40–50% annually versus 30–35% supply, forecasting nearline pricing to rise from under $15 to $25–$30 per TB.
Morgan Stanley raised Seagate's price target to $1,035 from $767, maintained an Overweight rating and named the company its top pick for AI-related hardware exposure. The upgrade reflects expectations of prolonged HDD shortages through 2028 and stronger pricing power.
Recent Asia-based industry checks indicate HDD demand growing 40–50% annually while supply increases by only 30–35%, driving shortages into at least calendar 2028. Vendors currently price nearline drives below $15 per terabyte but are targeting $25–$30 per terabyte over the next two to three years.
Even under Morgan Stanley’s conservative base case, Seagate’s fiscal 2028 EPS forecast stands about 70% above consensus. In a bull-case pricing scenario, the firm projects up to 10x EPS growth between 2025 and 2028, highlighting significant potential valuation upside.
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