Ticker (Exchange) – STX (NASDAQ)
ISIN – IE00BKVD2N49
Current Price – $103.5
Target Price – $122.5
Growth Potential – 18.4%🔥
Dividend Yield – 2.75% 💵
Investment Horizon – 1 year
Seagate Technology Holdings is an American company specializing in the production of hard drives and other data storage solutions. Since 2010, the company has been registered in Dublin. Seagate shows strong financial performance and is well-positioned to benefit from the artificial intelligence (AI) trend, making it an attractive investment. The fair value of the company's stock is estimated at $122.5, with a growth potential of 18.4%. The dividend yield stands at 2.75%.
Investment thesis
🔼 Strong Financial Performance. Seagate reported excellent results for the first quarter of fiscal year 2025 (ending September 27, 2024). The company's revenue grew by 49.1% YoY to $2.17b. Adjusted earnings per share (EPS) reached $1.58, compared to a loss of $0.22 the previous year. The result exceeded market expectations and matched the upper range of the company's own forecast. The gross profit margin increased from 19.8% to 33.3%, driven by price increases and cost control. The AI technology boom is fueling demand for data storage capacity, which benefits the company. For the second quarter of fiscal year 2025, Seagate expects revenue of approximately $2.3b (+/- $150 million) and EPS of $1.85 (+/- $0.20).
🔼 Dividends. The company shares its profits with shareholders through dividend payments. Management announced a 3% increase in dividends to $0.72 per share, corresponding to a 2.75% dividend yield, which is a strong indicator. In light of the anticipated Federal Reserve interest rate cuts, this will become even more significant.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
ISIN – IE00BKVD2N49
Current Price – $103.5
Target Price – $122.5
Growth Potential – 18.4%🔥
Dividend Yield – 2.75% 💵
Investment Horizon – 1 year
Seagate Technology Holdings is an American company specializing in the production of hard drives and other data storage solutions. Since 2010, the company has been registered in Dublin. Seagate shows strong financial performance and is well-positioned to benefit from the artificial intelligence (AI) trend, making it an attractive investment. The fair value of the company's stock is estimated at $122.5, with a growth potential of 18.4%. The dividend yield stands at 2.75%.
Investment thesis
🔼 Strong Financial Performance. Seagate reported excellent results for the first quarter of fiscal year 2025 (ending September 27, 2024). The company's revenue grew by 49.1% YoY to $2.17b. Adjusted earnings per share (EPS) reached $1.58, compared to a loss of $0.22 the previous year. The result exceeded market expectations and matched the upper range of the company's own forecast. The gross profit margin increased from 19.8% to 33.3%, driven by price increases and cost control. The AI technology boom is fueling demand for data storage capacity, which benefits the company. For the second quarter of fiscal year 2025, Seagate expects revenue of approximately $2.3b (+/- $150 million) and EPS of $1.85 (+/- $0.20).
🔼 Dividends. The company shares its profits with shareholders through dividend payments. Management announced a 3% increase in dividends to $0.72 per share, corresponding to a 2.75% dividend yield, which is a strong indicator. In light of the anticipated Federal Reserve interest rate cuts, this will become even more significant.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
