Pure Storage Maintains Buy Rating at Citi with $70 Price Target

Citi analyst Asiya Merchant maintains a Buy rating on Pure Storage with a $70.00 price target. The stock has a Strong Buy analyst consensus rating with a $71.83 average price target, a 25.27% upside from current levels. Corporate insider sentiment is negative, with 65 insiders selling their shares over the past quarter.

Pure Storage Inc. (PSTG) has seen a mix of analyst sentiments over the past three months, as highlighted by a recent analysis from Benzinga [1]. Nine analysts have shared their evaluations of the company, with diverse outlooks ranging from bullish to bearish. The table below provides a quick overview of their ratings over the past 30 days and the preceding months:

| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish |
|---------|------------------|-------------|-------------------|---------|
| 1 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 |
| 2 | 3 | 2 | 0 | 0 |

The average price target among analysts is $67.78, with a high estimate of $75.00 and a low estimate of $57.00. This represents a 9.13% increase from the previous average price target of $62.11 [1].

Key Analyst Actions:

- Asiya Merchant (Citigroup): Maintains a Buy rating with a $70.00 price target.
- Mike Cikos (Needham): Maintains a Buy rating with a $75.00 price target.
- James Fish (Piper Sandler): Raises Overweight to $66.00 from $53.00.
- Tim Long (Barclays): Lowers Equal-Weight to $57.00 from $61.00.
- Pinjalim Bora (JP Morgan): Lowers Overweight to $70.00 from $75.00.
- Amit Daryanani (Evercore ISI Group): Raises Outperform to $70.00 from $60.00.
- Meta Marshall (Morgan Stanley): Raises Equal-Weight to $62.00 from $40.00.
- Asiya Merchant (Citigroup): Raises Buy to $65.00 from $55.00.

Insights:

Analysts' actions reflect their reactions to recent market conditions and Pure Storage's performance. The company's recent revenue growth of 12.26% over the past 3 months, along with an 11% increase in revenue and a 32% jump in earnings per share over the past year, has influenced their ratings [2]. However, the company faces margin pressures linked to fluctuating NAND prices and the need for major hyperscaler deployments to drive growth.

Pure Storage's narrative projects $4.7 billion in revenue and $569.8 million in earnings by 2028, requiring 12.7% yearly revenue growth. The company's collaboration with SK hynix on QLC flash storage development aims to address demand from data-intensive hyperscaler environments, potentially offsetting margin risks.

Corporate Insider Sentiment:

Corporate insider sentiment remains negative, with 65 insiders selling their shares over the past quarter. This suggests a lack of confidence among insiders in the company's near-term prospects.

Conclusion:

Pure Storage's mixed analyst ratings and strong earnings growth suggest a complex investment narrative. Investors should consider the company's growth prospects, margin pressures, and insider sentiment when making investment decisions. Stay informed and make well-informed decisions with our Ratings Table [1].

References:

[1] https://www.benzinga.com/insights/analyst-ratings/25/08/47031771/expert-outlook-pure-storage-through-the-eyes-of-9-analysts
[2] https://simplywall.st/stocks/us/tech/nyse-pstg/pure-storage/news/how-investors-may-respond-to-pure-storage-pstg-earnings-surg