11:00 AM EDT, 04/29/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our price target from $509 to $811, 29x our CY 27 EPS estimate ($27.95), well above STX's three-year average (~16x), as accelerating AI demand structurally improves HDD industry growth and visibility, with the company reportedly nearly sold out of nearline capacity through CY 27. We lift our FY 26 EPS estimate by $2.01 to $14.92, lift our FY 27 estimate by $5.36 to $24.30, and initiate a FY 28 estimate at $31.20. Q3 results were spectacular, with results and guidance coming in well ahead of expectations on accelerating AI demand. We expect the results also reflect share gains for HDD at the expense of NAND-intensive SSDs given elevated memory prices, which should stick around through 2027. Looking forward, we are impressed by STX's rollout timelines for Mozaic 4+ (expected to contribute a majority of HAMR exabytes by CYE 26) and Mozaic 5+ (50 TB/drive), with shipments slated for late CY 27. We see STX's technological lead continuing to improve in this area, helping boost sales, margins, and cash flow.