"Blue Wave" Capsizes Chip Stocks, Morgan Stanley Remains Firmly Bullish on Seagate (STX.US): Weak Market Sentiment Disconnected from Fundamentals, Named Top Pick in Storage

Zhitong Finance APP has learned that after a three-day roadshow with Seagate (STX.US) CFO Gianluca Romano and Head of Investor Relations Shanye Hudson, the team led by Morgan Stanley analyst Erik Woodring wrote a fairly direct conclusion: over the past three months, Seagate's stock price has fallen 43%, a 59% drawdown from its 52-week high of $1,145, while during the same period the team raised its FY27/FY28 EPS forecasts by 25%50%. The current price is only 6.1x its FY28 EPS and 5.2x its calendar 2028 EPS, below the historical trough multiple of 8x for the hard drive industry. Morgan Stanley maintains its "Overweight" rating on Seagate Technology with a price target of $1,148.