TLDR
- Seagate (STX) hit an all-time high of $554.21, with a 1-year return of 639.49%
- Market cap stands at $123.3 billion; InvestingPro flags the stock as overvalued vs Fair Value
- BofA projects Q3 FY2026 revenue of $3.02B and EPS of $3.70, above Street consensus
- Seagate agreed to sell its Lyve Cloud storage business to Wasabi Technologies
- Morgan Stanley and Cantor Fitzgerald both hold Overweight ratings, with price targets of $582 and $650 respectively; UBS raised its target to $515 but kept a Neutral rating
Seagate Technology (STX) reached a new all-time high on Monday, touching $554.21. The milestone caps a stunning run for the storage giant, which has posted a 1-year total return of 639.49%.
Seagate Technology Holdings plc, STX
The stock’s market cap now sits at $123.3 billion. That’s a long way from where it was just a year ago, and the move has caught the attention of analysts across Wall Street.
Revenue has grown 25% over the last twelve months, driven by strong demand for data storage. That backdrop has clearly given investors confidence heading into the next earnings report.
BofA Securities is projecting fiscal Q3 2026 revenue of $3.02 billion and earnings per share of $3.70. That’s comfortably above the Street consensus, which sits at $2.94 billion in revenue and $3.48 EPS.
Analyst Targets Diverge
Morgan Stanley named Seagate a top pick and raised its price target to $582, maintaining an Overweight rating. Cantor Fitzgerald went further, lifting its target to $650 after citing takeaways from Western Digital’s Innovation Day. Both firms see more room to run.
UBS struck a different note. The firm raised its price target to $515 from $440 but kept a Neutral rating. The analyst pointed to strong hyperscaler demand in the near term, while warning that the expected HDD downcycle has simply been pushed out — not eliminated. UBS sees risk that demand eventually flattens and triggers a sharp drop in earnings.
InvestingPro analysis echoes some of that caution, flagging the stock as overvalued relative to its Fair Value. The RSI also points to overbought territory, which is worth noting for anyone considering an entry here.
Lyve Cloud Sale
On the corporate side, Seagate has agreed to sell its Lyve Cloud storage business to Wasabi Technologies. The deal sees Seagate receive equity in Wasabi rather than cash, though specific financial terms weren’t disclosed.
The move trims Seagate’s footprint in the cloud storage space, letting the company focus on its core hardware business. Whether the Wasabi equity turns out to be valuable depends on how that company performs going forward.
UBS’s note reminds investors the bull case isn’t without its cracks. The HDD cycle has been kind lately — but the firm believes the market may be giving Seagate too much credit for structural change relative to memory rivals.
Still, STX closed at an all-time high. The next test comes with Q3 earnings, where BofA’s above-consensus estimates will either validate the rally or give bears something to point at.
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