Zacks Investment Research downgraded Seagate Technology (STX) from a "Strong Buy" to a "Hold" rating. This change follows a period of strong performance for the data storage company.
Seagate reported financial results for its fiscal fourth quarter of 2026. Revenue reached $3.63 billion. Adjusted earnings were $5.71 per share. These figures surpassed analyst estimates.
High demand from cloud data centers drove the company's performance. Despite the strong report, some analysts suggest the stock's valuation became demanding. This follows a significant price rally.