JP Morgan Lowers Estimates And PT On Seagate Technology

JP Morgan has published a research report on Seagate Technology (NASDAQ: STX) after the company failed to report any beats on its December quarter, causing JP Morgan to cut estimates and price target.

In the report, JP Morgan writes "Shares of Neutral-rated Seagate stand to trade lower in the near term, in our view. Results and guidance had more negatives than positives, in comparison to WD's relatively stronger results posted on Tuesday. Aggressive pricing and consumer-related weakness resulted in Seagate not posting upside to expectations. Elevated HDD inventories at PC OEMs and uncertain growth dynamics in PCs, owing to tablets and elongating refresh cycles, remain hurdles to Seagate's stock outperforming the peer group, hence, our Neutral rating."

JP Morgan has also lowered the price target from $14 to $13.50 on Seagate Technology, which closed yesterday at $14.13.