Forecast: Analysts Think Seagate Technology Holdings plc’s (NASDAQ:STX) Business Prospects Have Improved Drastically

Seagate Technology Holdings plc (NASDAQ:STX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year’s forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company’s business prospects. Seagate Technology Holdings has also found favour with investors, with the stock up an impressive 24% to US$727 over the past week. It will be interesting to see if today’s upgrade is enough to propel the stock even higher.

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After the upgrade, the 22 analysts covering Seagate Technology Holdings are now predicting revenues of US$16b in 2027. If met, this would reflect a substantial 47% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 135% to US$24.91. Previously, the analysts had been modelling revenues of US$15b and earnings per share (EPS) of US$19.01 in 2027. So we can see there’s been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Seagate Technology Holdings

It will come as no surprise to learn that the analysts have increased their price target for Seagate Technology Holdings 45% to US$770 on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Seagate Technology Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 36% annualised growth until the end of 2027. If achieved, this would be a much better result than the 5.6% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.6% annually. So it looks like Seagate Technology Holdings is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Seagate Technology Holdings.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates – from multiple Seagate Technology Holdings analysts – going out to 2028, and you can see them free on our platform here.

We also provide an overview of the Seagate Technology Holdings Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.