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LAS VEGAS - Pure Storage (NYSE:PSTG), a $17.1 billion market cap company with impressive 69% gross margins and strong financial health according to InvestingPro, announced an expansion of its next-generation storage products designed for high-performance workloads, according to a press release issued Wednesday.
The company introduced several new offerings including FlashArray//XL R5, which doubles the input/output operations per second (IOPS) per rack unit compared to the previous generation and increases maximum raw capacity by up to 50 percent.
Pure Storage also launched FlashArray//ST, a new product designed for latency-sensitive workloads such as in-memory databases and large OLTP. The company claims this system delivers over 10 million IOPS per five rack units through an optimized IO path.
Additionally, the company unveiled FlashBlade//S R2, featuring next-generation controller blades that reportedly perform up to 30% better than competitors across workloads like genome sequencing and AI inference.
Pure Storage has also extended object support to FlashArray, creating what it describes as a single architecture for block, file, and object storage across its platform.
"Pure Storage was born to disrupt the industry, as we introduced new capabilities to reliably achieve better and better performance at any scale," said John Colgrove, Founder and Chief Visionary at Pure Storage, in the press release.
The company positions these products as solutions for organizations facing increasing data volumes and shifting business demands. Steven Allgeier, Vice President Distributed Infrastructure Group at Fiserv, was quoted expressing interest in how the new FlashArray//XL R5 would help manage escalating data demands.
Pure Storage is traded on the New York Stock Exchange under the ticker PSTG.
In other recent news, Pure Storage has reported financial results that exceeded expectations, demonstrating strong performance across various segments. The company achieved a 12% year-over-year revenue growth, with notable contributions from its E-family solutions and Subscription Services segment, which saw a 17.4% increase. Analysts from Citi highlighted the impressive 70% year-over-year growth in Total Contract Value (TCV) sales for Pure Storage’s Storage-as-a-Service offering. BofA Securities noted that Pure Storage’s revenue and earnings per share (EPS) surpassed forecasts, though operating margins remain under pressure. Evercore ISI emphasized the company’s success in surpassing April-quarter expectations, with significant growth in its Evergreen One TCV.
In terms of analyst ratings, Piper Sandler raised Pure Storage’s price target to $66, maintaining an Overweight rating, while Citi reaffirmed a Buy rating with a $65 target. BofA Securities increased its price target to $76, despite maintaining a Neutral rating due to ongoing challenges in product growth acceleration. Evercore ISI maintained an Outperform rating with a $70 target, citing confidence in the company’s market position and growth potential. Meanwhile, JPMorgan adjusted its price target to $70, maintaining a Neutral stance amid macroeconomic uncertainties.
Pure Storage’s ongoing projects, such as its collaboration with Meta and progress in artificial intelligence, have been highlighted as key factors in its growth strategy. The company’s continued focus on innovation, particularly with the introduction of its Fusion 2.0 product, has been well-received, with nearly 100 customers already utilizing it. Despite challenges in operating margins, analysts remain optimistic about Pure Storage’s ability to navigate the current economic landscape and capitalize on opportunities in the hyperscaler space.
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