** Shares of data storage firms Seagate Technology STX.O up 1.1% at $329.96 and Western Digital WDC.O up 3.5% at $229.19

** BofA Securities lifts price targets on both; maintains "buy" ratings

** BofA lifts PT on STX to $400 from $320, expects co to report strong Q2 on continued strength in data center revenue, some seasonal improvement in video and image applications and consumer revenue

** Adds it sees STX gross margins improving sequentially in each quarter in fiscal 2026

** Brokerage lifts PT on WDC to $257 from $197, expects strong Q2 for co with shipments of over 200 exabytes of storage capacity

** "We expect WDC to report rev, margins and EPS at the top of the guidance range when it reports F2Q26 after market close on Jan 29th," BofA says

** Adds it sees a stable pricing environment as demand continues to outpace supply, and expects price per TB of storage to be flat to up year-on-year

** Stocks of STX and WDC have more than tripled in 2025

(Reporting by Arnav Mishra in Bengaluru)

((Arnav.Mishra@thomsonreuters.com;))