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Investing.com - Raymond James raised its price target on Pure Storage (NYSE:PSTG) to $88.00 from $76.00 on Thursday, maintaining an Outperform rating following the company’s second-quarter fiscal 2026 earnings report. According to InvestingPro data, analyst targets range from $50 to $93, with Pure Storage currently trading at elevated valuation multiples relative to its peers.
The storage company’s shares jumped approximately 15% in after-hours trading, reflecting positive market reaction to what Raymond James described as a "beat and raise report against cautious sentiment." The stock has already shown strong momentum, with InvestingPro data showing a 9.2% gain in the past week and a 16% return over the last six months.
Raymond James highlighted that Pure Storage recognized initial revenue from its previously disclosed Meta deal, countering speculation about potential new delays in the project. The firm noted this revenue was immaterial in dollar terms but significant as a milestone.
The investment bank indicated that Pure Storage’s disclosures remain insufficient to fully incorporate the Meta deal into their forecast, suggesting it remains a potential source of upside. Raymond James also referenced new disclosures regarding gross margin in their analysis.
Raymond James expressed confidence that Pure Storage can sustain a teens sales growth rate with potential for upward revisions to forecasts.
In other recent news, Pure Storage reported strong second-quarter fiscal 2026 results, surpassing analyst expectations. The company achieved revenue of $861 million and earnings per share of $0.43, outperforming the projected $846 million and $0.39, respectively. This performance led to several analyst firms adjusting their price targets for Pure Storage. Needham increased its price target to $85 while maintaining a Buy rating, highlighting confidence in the company’s future revenue outlook supported by a 22% year-over-year growth in Remaining Performance Obligation (RPO). BofA Securities raised its price target to $80, maintaining a Neutral rating, noting improved operating margins. Evercore ISI also raised its target to $80 with an Outperform rating, citing double-digit sales growth in product and services/software segments. Piper Sandler increased its price target to $78, maintaining an Overweight rating, and noted improved gross profit margins. These developments reflect the market’s positive response to Pure Storage’s recent earnings performance.
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