In a report released today, Meta Marshall from Morgan Stanley maintained a Hold rating on Pure Storage (PSTG – Research Report), with a price target of $69.00.
Meta Marshall has given his Hold rating due to a combination of factors impacting Pure Storage’s current market position. The company has shown potential in tapping into the cloud market, as evidenced by recent successes. However, the immediate outlook is tempered by challenges such as the ongoing pressure on gross margins. This pressure is primarily due to rising NAND prices, which have led to pricing compression as Pure Storage’s products compete with traditional disk storage solutions.
Additionally, while there is optimism about the cloud opportunity, the lack of immediate catalysts and the time required for customers to adapt to new data architectures have contributed to a cautious stance. The anticipated benefits from AI investments and cloud deals are not expected to materialize in the near term, leading to a more conservative view on the stock. As a result, Meta Marshall suggests that investors might consider purchasing the stock at a lower price point, reflecting a belief in the long-term potential but acknowledging short-term uncertainties.
Marshall covers the Technology sector, focusing on stocks such as Arista Networks, Zebra Tech, and Cisco Systems. According to TipRanks, Marshall has an average return of 5.6% and a 55.10% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $61.00 price target.