07:55 AM EDT, 08/01/2025 (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 12-month target to $174 (from $150), based on 15.5x our CY 26 EPS view of $11.25. We lift our FY 26 (Jun.) EPS view to $10.24 (from $9.67) and start FY 27's at $12.07. Despite STX's 8% post-earnings decline, we maintain our Buy rating as the selloff reflects an overreaction to conservative Q1 FY 26 guidance ($2.50B vs. the $2.56B consensus) rather than fundamental deterioration, in our view. Management's track record of conservative guidance and comments that supply trails demand support our view, with nearline capacity is "largely spoken for" through mid-CY 26. Key growth drivers remain intact: HAMR technology leadership with Mozaic 3+ expanding to additional CSPs and Mozaic 4+ qualifying with hyperscalers, AI infrastructure driving structural storage demand (52% Y/Y nearline growth), and record 37.9% gross margins demonstrating pricing power.Trading at depressed multiples despite transformational margin improvement, STX offers compelling risk-adjusted returns as AI storage demand accelerates.