Wells Fargo Slashed Price Targets On Seagate and Western Digital - Read Why - Seagate Tech Hldgs (NASDAQ:STX), Western Digital (NASDAQ:WDC)

Wells Fargo analyst Aaron Rakers maintained Seagate Technology Holdings PLC STX with an Equal-Weight and reduced the price target from $110 to $90 (8.1% upside).
Rakers maintained Western Digital Corp WDC with an Overweight and decreased the price target from $80 to $70 (45.6% upside).
Rakers reduced its estimates on Seagate and Western Digital ahead of their upcoming earnings releases.
Also Read: Seagate, Western Digital Shares Lose Steam Post Rating Downgrade, Price Target Cut
The revision reflected a decline in Seagate's nearline HDD capacity ship and a reduced other mass capacity ship estimate given VIA weakness.
Rakers saw Western Digital recapture 100-200bps of capacity ship share in nearline HDDs due to less exposure to the China VIA segment vs. Seagate and industry checks.
Rakers expected downward estimate pressure amid slower nearline HDD demand and anticipated softening in client SSDs (W. Digital).
Rakers saw buoyant cloud-driven demand reflected via Alphabet Inc GOOG GOOGL, Google's recent data center CAPEX commentary, Meta Platform Inc's FB Capex, cloud demand indicators, AI infrastructure build-outs, server CPU cycle, etc.
Price Action: WDC shares traded higher by 2.22% at $48.33 on the last check Tuesday. STX shares traded higher by 1.13% at $83.24.