Craig-Hallum analyst Christian Schwab downgraded Seagate to Hold from Buy and maintained a $56 price target following the company's analyst day. In a research note to investors, Schwab says the company outlined a long-term model which seemed to indicate some headwinds to margins given necessary investments needed to ramp next generation competitive products, and says at at the mid-term of the long-term operating margin of 13%-15%, the company will "struggle" to drive EPS growth much past his current fiscal 2020 estimate. Schwab says he is moving to the sidelines given the lack of leverage in the company's long-term model and headwind to potential EPS expansion.