Credit Suisse Analyst Forecasts Weak 4Q Results for Seagate Technology and Western Digital Amid Ongoing Storage Market Weakness
Portfolio Pulse from Anusuya Lahiri
Credit Suisse analyst Shannon Cross has forecasted weak 4Q23 results for Seagate Technology Holdings PLC (STX) and Western Digital Corp (WDC) due to ongoing weakness in the storage market. She reduced Seagate's target price to $52 from $54 and maintained Western Digital's target price at $41. She also reduced her 4Q23 revenue and EPS estimates for both companies. The analyst cited geopolitical tensions between the U.S. and China as a critical risk factor for both companies. STX and WDC shares traded lower.
July 25, 2023 | 6:37 pm
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NEGATIVE IMPACT
Micron's products were banned in China in May, impacting a low-double-digit % of the company's worldwide revenue.
The ban on Micron's products in China, which accounts for a significant portion of its worldwide revenue, is likely to negatively impact the company's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Seagate's target price has been reduced to $52 from $54 due to ongoing weakness in the storage market. The company's shares traded lower by 1.40%.
The reduction in Seagate's target price and the forecast of weak 4Q23 results due to ongoing weakness in the storage market are likely to negatively impact the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Western Digital's target price has been maintained at $41 despite ongoing weakness in the storage market. The company's shares traded lower by 0.51%.
The forecast of weak 4Q23 results due to ongoing weakness in the storage market is likely to negatively impact Western Digital's stock price in the short term, despite the maintenance of its target price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Pure Storage management predicts no new HDDs will be sold in C2028 due to the growing delta in capacities between NAND and HDDs.
The prediction by Pure Storage management about no new HDDs being sold in C2028 due to the growing delta in capacities between NAND and HDDs could potentially impact the company's future strategy and stock price, but the impact is not immediate.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50