Seagate Technology Plc’s shares tumbled as much as 8 percent on Tuesday, after the hard disk drive (HDD) maker projected first-quarter revenue below estimates on slowing sales of personal computers.
The company has been hit by sluggish economic growth and shaky sales of PCs as consumers shift toward tablets and smartphones.
FBN Securities cut its price target on Seagate’s stock to $32, saying selling prices had started to decline from their peak levels after theThailand floods last year and inventory had started rising.
Seagate’s weak outlook follows an upbeat fiscal 2013 forecast from rival Western Digital Corp, which is banking on strong sales to big businesses.
The company forecast first-quarter sales of about $4 billion, below analysts’ estimates of $4.62 billion, according to Thomson Reuters I/B/E/S.
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