Auriga Maintains Buy on Seagate Technology

Auriga is out with its report today on Seagate Technology (NYSE: STX), maintaining Buy.

In a note to clients, Auriga writes, "Our recent checks suggest Seagate's June quarter is on solid ground with potential for upside if no issues develop in the month of June. We expect Seagate will be the big winner from ongoing industry consolidation, and believe investors continue to underestimate Seagate's free cash flow potential post-merger. Yes, tablets are an issue, but even with very modest HDD unit growth going forward, Seagate should be able to deliver expanding margins and very attractive ROIC, and at the current valuation we believe the shares remain at an attractive entry point for longer-term focused value investors."

Auriga maintains a $29 PT on STX.

Shares of STX closed Thursday at $16.28.