Bank of America Upgrades Seagate, Western Digital Targets on Strong HDD Demand and Pricing Power

Bank of America raised its price targets for Seagate Technology (STX) and Western Digital (WDC) amid robust data center demand, tight supply conditions, and sustained pricing power, boosting prospects for strong quarterly results. Analyst Wamsi Mohan maintained "buy" ratings for both stocks. Seagate is expected to report revenue of $2.78 billion and EPS of $2.85—above consensus—driven by strong data center sales, improved seasonal trends in consumer and video markets, and shipments of approximately 40 exabytes of HAMR drives. The company’s Mozaic 3+ platform has gained certification from five global cloud providers. With production nearly at full capacity, any incremental output can be sold at market prices above contract levels. BofA lifted STX’s target from $320 to $400 (+25%), implying a 22.3% upside from Tuesday’s close of $325.99. For WDC, BofA forecasts revenue, profit margin, and EPS near the top end of guidance, with gross margin potentially rising 90 basis points to 44.8%. Marginal profitability is expected to remain above 50%. BofA raised WDC’s target from $197 to $257 (+30.5%), reflecting a 15% potential upside from Tuesday’s $222.97 close. The firm projects WDC will ship over 200 exabytes per quarter by 2026.