Seagate Technology (STX) and Western Digital (WDC) shares faced a third consecutive weekly loss. This occurred amid a broader tech sell-off. A Wells Fargo research note intensified the slide. The firm significantly lowered its price target on Seagate to $865 from $1,180. Wells Fargo also slashed its target for Western Digital.
Wells Fargo maintained its 'Overweight' rating on both data storage manufacturers, despite the reduced price targets. The analyst suggested the recent stock decline has been excessive. Concerns over a competitor's planned production increase partly fueled this decline. The firm believes the sell-off presents an attractive buying opportunity. Wells Fargo cites expectations for durable long-term revenue growth.