S&P Capital IQ Reiterates its SELL Rating on Seagate Technology, Target Price Increased

October 24 00:00 2011

NEW YORK, October 24 (RainbowNewsLine.com) – Analyst Jim Yin of S&P Capital IQ reiterates his SELL rating on the shares Seagate Technology (NASDAQ:STX), while raising his estimates for the company. The 12-month target price has been raised from $11 to $12.

Analyst Jim Yin, in a research note published on October 22, mentions that the company reported its September quarter EPS ahead of the estimates. Although Seagate Technology’s Thailand facility is not affected by the floods, unit shipments of hard disk would be constrained by the lack of key components that is expected to continue until the mid2012, analyst says. The EPS estimates for FY12 and FY13 have been raised from $0.74 to $0.76 and from $0.82 to $1.33 respectively, reflecting potential gain in market share due to the reduction in competitors’ production capacity, the analyst adds. The analyst views the shares of Seagate Technology overvalued.