UBS Keeps Sell Rating on Pure Storage, Raises Price Target to $55

UBS Keeps Sell Rating on Pure Storage, Raises Price Target to $55

UBS has maintained its Sell rating on Pure Storage (NYSE: PSTG) but has raised its price target to $55, as reported by Investing.com [1]. This adjustment comes despite the company's strong second-quarter fiscal 2026 results, which exceeded analyst expectations. Pure Storage reported earnings per share (EPS) of $0.43 and revenue of $861 million, surpassing the projected EPS of $0.39 and revenue of $846 million [1].

Needham, another analyst firm, has raised its price target to $85, reflecting the company's anticipated stronger growth in fiscal year 2026. Pure Storage's stock has shown significant momentum, gaining over 9% in the past week according to InvestingPro data [1]. The company's accelerating momentum across its product portfolio, particularly in Evergreen//One, Cloud Block Store, and Portworx offerings, is driving this growth [1].

However, UBS's decision to maintain a Sell rating and lower the price target to $55 indicates a more cautious view. The firm may be concerned about the stock's current valuation, which suggests it is trading above its Fair Value. Additionally, UBS might be factoring in the broader market conditions and potential regulatory headwinds [2].

Pure Storage's strong performance in recent quarters has been noted by other analysts. BofA Securities, Evercore ISI, and Piper Sandler have all raised their price targets, reflecting the company's improved financial performance [1]. Despite this, UBS's Sell rating and lower price target signal a more conservative stance.

Investors should carefully consider UBS's updated rating and price target alongside other analyst opinions and the company's recent financial results. The investment community's response to Pure Storage's strong performance has been largely positive, with many analysts maintaining a Strong Buy rating [1].

References:
[1] https://www.investing.com/news/analyst-ratings/pure-storage-stock-price-target-raised-to-85-from-75-at-needham-93CH-4214359
[2] https://www.ainvest.com/news/crowdstrike-holdings-synopsys-pure-storage-receive-analyst-ratings-2508/