Pure Storage (PSTG – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Aaron Rakers from Wells Fargo maintained a Buy rating on the stock and has a $80.00 price target.
Aaron Rakers has given his Buy rating due to a combination of factors including Pure Storage’s promising progress in the hyperscale market and their strategic initiatives. The company has made significant strides with its first hyperscale win, which is advancing well in terms of testing and co-development. Additionally, Pure Storage is accelerating its conversations with other hyperscalers, which could lead to further opportunities. The company is also focusing on integrating its Purity and DFM solutions, enhancing its DFM density roadmap, and expanding its supply chain by qualifying new NAND suppliers.
Moreover, despite a temporary decline in product gross margins due to a shift in product mix and NAND pricing dynamics, the margins are expected to recover. Pure Storage’s upcoming AI storage announcements at NVIDIA’s GTC event also highlight its focus on competitive positioning in AI and HPC workloads. The company’s guidance for revenue and EBIT growth in the upcoming fiscal year further supports the positive outlook, reinforcing the Buy rating given by Aaron Rakers.
According to TipRanks, Rakers is a top 100 analyst with an average return of 22.8% and a 64.69% success rate. Rakers covers the Technology sector, focusing on stocks such as Western Digital, Advanced Micro Devices, and Seagate Tech.