Analysts See 55% Upside in Seagate and Western Digital Despite Chip Sector Weakn

Melius Research initiated STX and WDC as buys targeting 55% upside, but options volume remains muted despite 2-to-1 bullish call-to-put ratios.

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CNBC's Oliver Renick highlighted a split in investor sentiment on his Options Action segment this morning. Melius Research initiated coverage of Seagate and Western Digital as Buy-rated stocks, with price targets about 55% above current levels. Renick reported that options flow leaned bullish in each stock, with roughly twice as many calls bought as puts, but that overall volume was "surprisingly muted" compared with the heat in adjacent memory names.

Seagate Technology (NASDAQ:STX) closed its March quarter with revenue of $3.11 billion, up 44.1% year over year, and non-GAAP EPS of $4.10 against a $3.50 consensus. Non-GAAP gross margin printed at 47.0%, up from 36.2% a year earlier, and free cash flow reached $953 million versus $216 million in the prior-ye

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/analysts-see-55-upside-seagate-230945837.html)