Seagate, Western Digital rise after BofA lifts PTs on strong Q2 outlook

Shares of data storage firms Seagate Technology STX.O up 1.1% at $329.96 and Western Digital WDC.O up 3.5% at $229.19

BofA Securities lifts price targets on both; maintains "buy" ratings

BofA lifts PT on STX to $400 from $320, expects co to report strong Q2 on continued strength in data center revenue, some seasonal improvement in video and image applications and consumer revenue

Adds it sees STX gross margins improving sequentially in each quarter in fiscal 2026

Brokerage lifts PT on WDC to $257 from $197, expects strong Q2 for co with shipments of over 200 exabytes of storage capacity

"We expect WDC to report rev, margins and EPS at the top of the guidance range when it reports F2Q26 after market close on Jan 29th," BofA says

Adds it sees a stable pricing environment as demand continues to outpace supply, and expects price per TB of storage to be flat to up year-on-year

Stocks of STX and WDC have more than tripled in 2025