Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Evercore ISI has raised its price target on Pure Storage (NYSE:PSTG) to $90.00 from $85.00 while maintaining an Outperform rating following the company’s Pure Accelerate event in New York City. The stock has demonstrated remarkable momentum, with a 68% return over the past year and is currently trading near its 52-week high of $89.09. According to InvestingPro data, 16 analysts have recently revised their earnings expectations upward for the upcoming period.
The firm highlighted Pure Storage’s Enterprise Data Cloud strategy, which aims to shift enterprise storage architecture from siloed arrays to cloud-like fleets. This strategy is powered by the Purity operating system and Fusion, positioning Pure as the architectural standard for storage modernization. With a market capitalization of $27.4 billion and revenue growth of 11.3% in the last twelve months, Pure Storage has established itself as a significant player in the enterprise storage market.
Evercore ISI noted that artificial intelligence is serving as a catalyst for Pure Storage, driving large infrastructure investments and prompting customers to rethink their storage architectures. The firm observed that storage decisions are now being made by higher-level executives than before, forcing CIOs to reconsider data center design with a more horizontal, cloud-like storage approach. For deeper insights into Pure Storage’s AI-driven growth potential and comprehensive financial analysis, explore the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
The research firm also pointed to Pure Storage’s expanding hyperscale opportunity, with the company engaging with multiple hyperscalers and having completed testing of its DFM solution. Pure Storage has established supply agreements with three of the top five NAND vendors, giving it access to approximately 49% of global NAND flash capacity.
Evercore ISI reported that Pure Storage’s Evergreen adoption is growing, with interest from AI engagements driving better appreciation of Evergreen//One as customers and channel partners recognize the benefits of vendor-managed SLAs given the complexity of designing AI-ready infrastructure. Pure Storage has more than 1,000 Evergreen//One customers.
In other recent news, Pure Storage reported revenue of $861 million, surpassing UBS estimates by approximately 1.4%, with an operating margin of 15.1%, which was slightly higher than expected. The company showed an 11% growth in its product segment compared to about 1% in the same period last year. Pure Storage has also introduced enhancements to its platform, including the Pure Storage Cloud Azure Native, designed to assist customers in migrating VMware workloads to Microsoft Azure. Additionally, the company announced new cybersecurity features and partnerships, such as an integration with CrowdStrike Falcon Next-Gen SIEM, aimed at improving real-time security monitoring. Analyst firms have adjusted their price targets for Pure Storage, with UBS raising its target to $55 while maintaining a Sell rating. TD Cowen increased its price target to $85, keeping a Buy rating, and noted revenue generation from Meta with high-margin royalty revenues. Lake Street Capital Markets also raised its price target to $80, citing Pure Storage’s strong performance and guidance for 15.5% growth in the year’s second half. These developments reflect the company’s ongoing efforts to enhance its offerings and financial performance.
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