In a report released yesterday, Krish Sankar from TD Cowen maintained a Buy rating on Pure Storage (PSTG – Research Report), with a price target of $80.00.
Krish Sankar has given his Buy rating due to a combination of factors that highlight Pure Storage’s strategic positioning in the market. The potential collaboration with xAI is a significant factor, as it could enhance the company’s reputation and validate its capabilities, even if the initial allocation is small. Additionally, Pure Storage’s hyperscale design win with Meta is another positive aspect, signaling strong partnerships with major players in the industry.
Sankar also acknowledges challenges, such as declining prices in high-capacity storage and the slowing growth of Remaining Performance Obligations. Despite these hurdles, Pure Storage’s lower reliance on state and Federal contracts, coupled with their growth from enterprise expansions, positions them well for future opportunities. Although revenue estimates for FY26/CY25 have been adjusted slightly downward, the overall outlook remains favorable, leading to the Buy rating.
In another report released on February 20, Citi also maintained a Buy rating on the stock with a $80.00 price target.