Pure Storage price target lowered to $77 from $80 at Citi

Citi lowered the firm’s price target on Pure Storage (PSTG) to $77 from $80 and keeps a Buy rating on the shares following the Q4 report. The firm says softness in product gross margins overshadowed the company’s better than expected revenues and operating income. While recognizing the near term margin volatility associated with Pure Storage’s product ramp, Citi remains constructive on the company’s opportunity ahead given continued secular growth in flash and subscription offerings.