Susquehanna raised its rating on Seagate Technology (STX) to Positive from Neutral and lifted its 12-month price target to $85 from $70, citing a surge in data center capacity fueled by AI workloads. The firm expects Seagate’s near-term revenue to climb by 18% year-over-year in Q4, driven by a 15% increase in HDD unit shipments and a 200 basis-point improvement in gross margin. Analysts highlighted that AI model training now consumes more than 40% of Seagate’s total exabyte demand, up from 25% a year ago, and project that STX’s free cash flow will exceed $3.2 billion in fiscal 2026, supporting further share repurchases.