Markets & Finance

JP Morgan Cuts Seagate Technology


JP Morgan cut its investment opinion on Seagate Technology (STX) to neutral from overweight.

Analyst Mark Moskowitz cited a more somber stance on hard disk drive (HDD) industry economics for the next few quarters. He's concerned that the revenue and margin expansion story, which inspired his previous overweight rating, is on a path for a cooling-off period. He points out, however, that the company is likely to be the first beneficiary of a transition to perpendicular recording in the coming year. Nevertheless, in the interim, he would not recommend adding positions in Seagate until the hard disk drive industry navigates through the start of 2006.


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