Needham Positive on Seagate Technology (NASDAQ:STX)

Citing a number of factors, Needham & Company said they remain positive with their outlook on Seagate Technology (NASDAQ:STX).

Needham says, "We remain positive on Seagate given: 1) leading position for the next areal density transition; 2) significant buyback in place with material dividend yield possible; 3) placement at epicenter of increased IT spending for 2011; and 4) significant upside to current estimates after conservative industry guides...For F3Q, we forecast $2.67B and $0.25. F11 becomes $10.6B and $1.14 vs. $10.7B and $1.40 (mostly due to taxes - $0.06, interest - $0.06 plus the $0.09 hit from the one-time item in F2Q). F12 becomes $11.2B and $2.43, vs. our previous $11.8B and $2.35."

Needham & Company maintains a "Strong Buy" rating on Seagate Technology (STX), which was trading at $13.04, losing $1.09, or 7.71 percent, as of 1:11 PM EST. Needham has a price target of $19 on Seagate.