Penguin Solutions price target raised to $23 from $22 at Barclays

Barclays analyst Tom O’Malley raised the firm’s price target on Penguin Solutions (PENG) to $23 from $22 and keeps an Overweight rating on the shares post the Q1 report. The resurgence of the company’s major hyperscale customer, which is like Meta Planforms (META), for a third generation system “quells fears” about Penguin’s path to continued growth for advanced computing, the analyst tells investors in a research note. However, the firm says that despite the near-term strength, the company’s reaffirmed guidance points to a “lumpier” second half of the year. Nonetheless, Penguin’s qualitative indicators are all tracking “materially more positive,” creating a stronger setup for a stock, contends Barclays.