Evercore says CoreWeave deal could yield sizable contributions for Pure Storage

After Pure Storage (PSTG) announced its strategic investment in GPU cloud provider CoreWeave as part of the latter’s latest funding round, and noted that as part of the strategic partnership, Pure will deploy its storage solutions at CoreWeave’s cloud environments, Evercore ISI noted that investors “appear to view the CoreWeave partnership as disappointing compared to the likes of a tier-1 hyperscaler” such as Microsoft’s (MSFT) Azure, Amazon’s (AMZN) AWS, Alphabet’s (GOOG) (GOOGL) GCP, or Meta (META). However, the firm thinks the deal at scale, in the 2026/2027 timeframe, “could result in sizable revenue/EPS contributions for Pure,” which could help Pure sustain or accelerate double-digit top-line growth in the out-years. While the deal announcement will “most likely pressure the stock in the near-term” given the lack of details around the revenue/EPS contribution and the somewhat disappointing “hyperscaler,” the firm thinks Pure’s joint collaboration will enable its solutions to be “designed-in” for future deployments and it keeps an Outperform rating and $70 price target on Pure shares.