- Benchmark analyst Mark Miller reiterated a Hold on Seagate Technology Holdings PLC (NASDAQ:STX). The firm does not provide price targets for Hold-rated stocks.
- The drive companies have recently significantly lowered their forecasts for the September quarter due to weaker trends, especially in Asia, where inventory corrections are currently underway.
- Last week citing similar concerns, memory chip manufacturer Micron Technology, Inc (NASDAQ:MU) guided for a significant sequential decline and a possible loss for this quarter.
- Micron believes the weakness will extend into early next year.
- Seagate and Western Digital Corp (NASDAQ:WDC) reported they saw more cautious buying behavior from some cloud and enterprise customers.
- He sees this trend expanding. As such, he cut his FY23 estimates.
- Some improvements are likely in 2H23, and the high dividend yield convinced him to reiterate a Hold.
- He reduced his December quarter forecast from non-GAAP EPS of $1.22 on sales of $2.4 billion to non-GAAP EPS of $1.02 on sales of $2.25 billion.
- His FY23 forecast goes from non-GAAP EPS from $5.36 on sales of $9.85 billion to non-GAAP EPS of $4.32 on sales of $9.15 billion.
- Price Action: STX shares traded lower by 3.10% at $55.65 on the last check Thursday.
Crude Oil Rises Over 1%; Cidara Therapeutics Shares Spike Higher
U.S. stocks traded lower toward the end of trading, with the Nasdaq Composite falling more than 1% on Wednesday.
The Dow traded down 0.57% to 34,443.02 while the NASDAQ fell 1.19% to 13,853.60. The S&P 500, also fell, dropping, 0.80% to 4,460.96.
