11:56 AM EDT, 10/29/2025 (MT Newswires) -- Seagate Technology ( STX ) reported "strong" fiscal Q1 results and guidance for Q2 and the company's management confirmed strengthening demand for hard disk drives, Morgan Stanley said in a Wednesday note.

The analysts said Seagate's ( STX ) management expects gross margin to expand in Q2 from 40.1% in Q1 and that they continue to believe that "gross margins are biased upward."

Morgan Stanley also raised its fiscal 2026 and 2027 net income outlook by 5% to 7% on stronger mix and pricing trends.

The firm maintained an overweight rating on the stock and raised its price target to $270 from $265.

Shares of the company were up 17.5% in recent trading.

Price: 262.07, Change: +39.07, Percent Change: +17.52