William Blair analyst Jason Ader has maintained their bullish stance on PSTG stock, giving a Buy rating yesterday.
Jason Ader has given his Buy rating due to a combination of factors that highlight Pure Storage’s strong performance and strategic positioning. The company reported impressive fourth-quarter results, with revenue growth surpassing expectations, driven by robust demand across its diverse product offerings, including FlashBlade and FlashArray//XL. Despite a decline in product gross margins due to a shift towards lower-margin QLC-based arrays, Pure Storage managed to exceed non-GAAP operating margin expectations, showcasing its operational efficiency.
Looking forward, Pure Storage’s revenue guidance aligns with market consensus, reflecting stable growth prospects. The company is making strategic investments in its technology and supply chain, aiming to enhance its DirectFlash technology and expand its integration with major hyperscalers. These initiatives are expected to support long-term growth, despite short-term margin pressures. Ader’s Buy rating reflects confidence in Pure Storage’s ability to navigate these challenges and capitalize on future opportunities.
In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a $80.00 price target.
Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PSTG in relation to earlier this year.