Benzinga | Aug 12, 2021 10:03AM EDT

Goldman Sachs Upgrades Seagate Technology, Raised Price Target Implies 6% Upside

* Goldman Sachs analyst Toshiya Hari upgraded Seagate Technology Holdings PLC (NASDAQ:STX) to Neutral from Sell with a price target of $98, up from $85, implying a 5.6% upside.

* The stock is up 85% since being added to America's Sell List in 2018, Hari said.

* Hari believes he underestimated the company's ability to gain share in nearline HDD, the pace at which gross margins would recover, and the expansion in STX's multiple.

* He added, however, that Seagate shares now trade at 11.5x expected next-12-months earnings, which is above the 3-year median multiple of 10.7x.

* Price Action: STX shares traded lower by 2.56% at $91.72 on the last check Thursday.