Seagate Shares Skyrocket Up, Bank of America Assists on Facebook IPO
Seagate Technology PLC (NASDAQ:STX): Seagate (NASDAQ:STX) reported positive Q2 results last night, beating both EPS and revenue estimates. Q2 EPS came in at $1.32 vs. consensus $1.08, while revenue of $3.2B beat consensus of $3.15B. The company forecast in-line Q3 revenue and noted that it expected to ship at least 60M disk drives next quarter. On its conference call, management said FY12 demand will exceed supply and the low point of industry production likely occured in mid-December. The company expects to continue dividends and share repurchases in 2012. This morning, several firms upgraded their price target on the shares. FBN Securities raised its target to $40 from $25. Needham’s target went to $45 from $35, and RW Baird upped their target to $27 from $20. Due to the positive sentiment and earnings, shares of Seagate have rallied over 23% in late morning action to $26.15, making a fresh 52-week high in the process.
Bank of America Corp (NYSE:BAC): Facebook has chosen Morgan Stanley (NYSE:MS) to lead its IPO, souces says, according to Bloomberg. Others helping to manage the sale include Goldman Sachs Group (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Barclays Plc (NYSE:BCS) and Bank of America Corp. (NYSE:BAC).
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