Morgan Stanley analyst Meta Marshall maintained a Hold rating on Pure Storage (PSTG – Research Report) today and set a price target of $69.00.
Meta Marshall has given his Hold rating due to a combination of factors related to Pure Storage’s recent developments and market positioning. The company has secured a design win with META for low-end storage tiers, which demonstrates the economic viability of their flash storage solutions. This win is promising for potential future expansions into mid- and high-tier storage at META and other hyperscalers. However, the qualification process for these expansions can be lengthy, and there is limited information on the immediate ramp-up of META’s storage requirements.
While the META deal highlights the advantages of Pure Storage’s offerings, it represents a small portion of the overall cloud storage market. The initial ramp is expected to account for a modest share of the demand, and other significant deals are not anticipated in the near term. As a result, Marshall remains cautious, opting to maintain a Hold rating until more details emerge about the META ramp and further opportunities with other hyperscalers become clearer.
Marshall covers the Technology sector, focusing on stocks such as Arista Networks, Cisco Systems, and Coherent Corp. According to TipRanks, Marshall has an average return of 5.1% and a 54.62% success rate on recommended stocks.
Questions or Comments about the article? Write to editor@tipranks.com