Penguin Solutions offering multiple catalysts, says Loop Capital

Loop Capital analyst Ananda Baruah keeps a Buy rating and $30 price target on Penguin Solutions (PENG) after its Q1 earnings beat last week. The firm maintains its view that Penguin is an on-the-come Gen-AI related company with “teeth in important areas of critical next generation technology”, and it sees multiple catalysts developing over the next 12-24 months that make the investment story “very intriguing”, the analyst tells investors in a research note. Loop adds that Penguin’s SK Telecom (SKM) relationship remains materially under-appreciated while noting that the stock’s valuation is reasonable to attractive given upcoming catalysts and the recent SK Telecom investment.