Pure Storage Inc. (PSTG) has disclosed a new risk, in the Innovation / R&D category.
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Pure Storage Inc. is heavily investing in creating flash storage solutions targeted at hyperscalers, having recently achieved a design win with a notable customer in this sector. However, the absence of guaranteed sales post-design win poses a significant risk, as the customer may still choose not to proceed with purchases or licensing agreements. The uncertainty surrounding the conversion of design wins into actual revenue underscores the financial risk involved, particularly given the substantial resources committed to these endeavors. This unpredictability could affect the company’s revenue forecasts and financial stability, especially if anticipated sales do not materialize by fiscal year 2027.
Overall, Wall Street has a Moderate Buy consensus rating on PSTG stock based on 12 Buys, 1 Sell and 6 Holds.
To learn more about Pure Storage Inc.’s risk factors, click here.
