Shares of Seagate Technology
Seagate has been benefiting from better pricing and capacity as its competitors were hit hard by the Thailand flooding, J P Morgan analysts said in a note to clients.
They raised their price target on the stock to $17.50 from $15.
Seagate rival Western Digital
Analysts said Seagate's acquisition of Samsung Electronics Co's <005930.KS> HDD business in December is also expected to improve the company's margins.
We believe the accretion (in margins) is likely to be stronger in future quarters as Seagate integrates the Samsung business and aligns the cost structure, ThinkEquity analysts said.
The brokerage raised its price target to $24 from $18.
Shares of the company were at $17.50 in pre-market trade. They closed at $15.99 on Monday on Nasdaq.