Western Digital and Seagate Stocks Score Buy Ratings. Look for Storage Demand Recovery.

Disk-drive producers Seagate Technology and Western Digital could have a solid few years ahead, thanks to strong demand from large cloud providers. In a research note on Tuesday, Citi Asiya Merchant wrote that storage “industries are entering a period of a cyclical recovery.” Much of that storage spending is estimated to come from enterprise companies and giants such as Microsoft and Amazon Web Services that run massive data centers and have a big slice of the cloud computing market, she added.