Bank of America "10% plunge is a buying opportunity"...Seagate target price raised to $1,150

▲ Seagate (STX)/Source: X

Wall Street analysis suggests that Seagate, which plummeted more than 10% in a single day due to a sharp decline in artificial intelligence (AI) related stocks, is actually a buying opportunity. Bank of America maintained its 'Buy' investment rating and raised its target price from the previous level, suggesting further upside potential.

According to cryptocurrency specialized media Watcher.Guru on July 3 (local time), Seagate (STX) plunged more than 10% the previous day amid a general weakness in AI-related semiconductor stocks. It fell to as low as $795 during intraday trading, then partially recovered its losses to close at $820. The media reported that the area around $800 is currently acting as a major support level.

Wamsi Mohan, an analyst at Bank of America Securities, evaluated this correction as a buying opportunity at a low price in a report sent to clients. He particularly noted that the sub-$800 range could be a favorable buying zone for long-term investors, and raised the target price from the previous $1,000 to $1,150. He also maintained the 'Buy' investment rating.

If the new target price is realized, it would represent an upside potential of $330 per share, or approximately 40%, compared to the current stock price of $820. The media explained that based on this, an investment of $1,000 could grow to a value of approximately $1,400.

Seagate's stock price recently fell from a high of $915 to $820, but the media assessed that a rebound is possible if investor sentiment across the AI sector recovers. In particular, Bank of America's upward revision of the target price is interpreted as reflecting confidence in long-term growth potential.

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