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Investing.com - Oppenheimer has initiated coverage of Pure Storage (NYSE:PSTG) with an Outperform rating and a $120 price target on Monday. The stock is currently trading at $84.59, representing a potential 42% upside to the target, though shares have declined 8.5% over the past week according to InvestingPro data.
The research firm cited Pure Storage’s position as a beneficiary of increasing creation and storage of unstructured data used for AI applications as a key factor in its bullish outlook. This optimism aligns with the company’s 11.3% revenue growth over the last twelve months.
Oppenheimer also highlighted Pure Storage’s technological advantage in the all-flash array market, which it believes will enable the company to gain market share over the long term.
The firm noted that Pure Storage is expanding its customer base to include tier-1 and tier-2 hyperscalers, which should contribute to strong new customer additions and existing customer expansion.
Oppenheimer’s $120 price target is based on 9.3 times its calendar year 2026 (fiscal year 2027) enterprise value to sales estimate, with the firm expecting continued operating margin improvement for Pure Storage. The company currently trades at a P/E ratio of 209.36, reflecting high growth expectations, with its next earnings report scheduled for December 2.Investors seeking deeper insights can access Pure Storage’s comprehensive financial health metrics and 16 additional ProTips through InvestingPro, which offers detailed Pro Research Reports on over 1,400 US stocks including PSTG.
In other recent news, Pure Storage has announced the appointment of Patrick Finn as Chief Revenue Officer. Finn, who previously held senior sales roles at companies like Cisco and IBM, will lead the company’s global sales and channel operations. Meanwhile, Guggenheim has reaffirmed its Buy rating on Pure Storage, raising its price target to $105, citing the company’s competitive total cost of ownership advantages and increased executive-level discussions around its Enterprise Data Cloud platform. Similarly, Needham has raised its price target to $100, maintaining a Buy rating, following Pure Storage’s announcement of a significant expansion in its cloud offerings.
On a different note, UBS has maintained a Sell rating with a $55 price target, expressing skepticism about the company’s cloud revenue potential despite acknowledging some opportunities with major clients like Meta. These developments reflect a mix of optimism and caution among analysts regarding Pure Storage’s market positioning and future prospects. Finn’s appointment and the firm’s strategic focus on cloud expansion are seen as pivotal moves for the company. The varied analyst ratings highlight differing expectations for Pure Storage’s performance in the evolving data storage landscape.
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