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Investing.com - Piper Sandler raised its price target on Pure Storage (NYSE:PSTG) to $78.00 from $66.00 on Thursday, while maintaining an Overweight rating on the data storage company’s shares. The company, currently valued at nearly $20 billion, has demonstrated strong financial health with a robust 69% gross profit margin and double-digit revenue growth of 11% in the last twelve months.
The stock jumped more than 15% in after-hours trading following Pure Storage’s quarterly results, which exceeded expectations by 2%. The company also reported accelerating remaining performance obligations (RPO) and improved gross profit margins, with product gross profit margin increasing 4% quarter-over-quarter. According to InvestingPro data, Pure Storage maintains a strong financial position with more cash than debt on its balance sheet, while analysts are projecting continued profitability this year.
Pure Storage significantly raised its fiscal year 2026 guidance, suggesting both upside to current estimates and acceleration into year-end. Piper Sandler noted positive commentary around the continued Meta ramp and other ongoing cloud engagements that could serve as further catalysts for the stock.
The research firm believes the market continues to underestimate the margin potential from cloud deals, which involve perpetual software with over 90% gross profit margins. Piper Sandler views the numbers setup as favorable, particularly for calendar year 2026, where current estimates imply only mid-single-digit enterprise growth.
The next catalyst for Pure Storage shares will be the company’s September 25 event, according to Piper Sandler’s research note.
In other recent news, Pure Storage Inc . reported its fiscal second-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.43, which exceeded the forecast of $0.39. Additionally, Pure Storage reported revenue of $861 million, outpacing the projected $846.2 million. These results highlight the company’s strong financial performance in the recent quarter. The earnings announcement was followed by a rise in Pure Storage’s stock in aftermarket trading. Such positive financial outcomes may influence investor sentiment positively. These developments are part of the company’s recent activities and provide insight into its current financial standing.
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