Disk Drives: Merrill Downgrades Seagate, Western Digital

Wed, 18 Nov 2009 15:09:29 +0000

Bank of America/Merrill Lynch analyst Scott Craig today cut his ratings on both Seagate (STX) and Western Digital (WDC) to Underperform from Buy. He set a price target of $15 for STX, which yesterday closed at $17.01; for WDC his target is $35, below yesterday’s close at $39.16. Craig notes that shares of both disk-drive companies have rallied dramatically: Since March, WDC is up 208%, and STX is up 452%. He says industry fundamentals are near peak levels on many metrics. “While the end demand environment and possible inventory replenishment may drive the stocks higher near-term, we believe the easy money in the cyclical hard-disk drive stocks has been made,” he writes. Craig worries that 2010 could see capacity expansion in the industry, creating a risk of pricing and margin pressure. He thinks the industry will start adding capacity in the first half of next year, and that both companies are likely to increase their capital spending forecasts. He notes that pricing ...

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Sirius Chairman Parsons Exits; Replaced By Hartenstein

Fri, 13 Nov 2009 16:44:57 +0000

Sirius XM (SIRI) late yesterday said Gary Parsons has resigned a chairman and a director, and that director Eddy Hartenstein has been named non-executive chairman. Parsons was founder of XM, and chairman of the company before it merged with Sirius. Hartenstein is publisher at CEO of the Los Angeles Times . A former chairman and CEO of DirecTV (DTV) , he sits on the boards of SanDisk (SNDK) , Broadcom (BRCM) and The City of Hope , a cancer hospital near Los Angeles.

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Disk Drives: Merrill Downgrades Seagate, Western Digital

Sirius Chairman Parsons Exits; Replaced By Hartenstein