Investment bank Wade Bush is optimistic about storage stocks: targets for Seagate Technology (STX.US) and Western Digital (WDC.US) were raised before financial reports were released

The Zhitong Finance App noticed that before Seagate Technology (STX.US) and Western Digital (WDC.US) were about to release quarterly earnings reports, investment bank Wade Bush Securities raised their target share prices.

Wade Bush analyst Matt Bryson raised Seagate's price target from $825 to $1000, while Western Digital raised its price target from $540 to $650. He maintained an “overweight” rating for both stocks.

In his report to customers, Bryson wrote, “We believe that Seagate's announced results will exceed general market expectations (driven by profit margins) because we expect that a slight increase in product prices combined with an improvement in the product portfolio will once again surpass the predicted results. Additionally, as the new Long Term Agreement (LTA) comes into effect, we expect Seagate to benefit from a further increase in average selling price (ASP) throughout 2027.”

Bryson added, “Similar to Seagate, we expect Western Digital to also report results that exceed general expectations in supermarkets (given its more conservative gross margin guidelines, there seems to be more room to exceed expectations). “But again, our adjustments to the model focus on changes in expectations for future years, as we are more comfortable with the higher average sales price assumption for FY2028.”

Analysts generally expect Seagate, which will release earnings on July 28, to have earnings per share (EPS) of $5.08 and revenue of $3.49 billion for the fourth fiscal quarter. Western Digital, which will release its financial report on August 5, expects earnings per share of $3.30 and revenue of $3.7 billion.