Cautious Hold Rating for Pure Storage Amid Market Uncertainties and Leadership Changes

Morgan Stanley analyst Meta Marshall maintained a Hold rating on Pure Storage (PSTG – Research Report) today and set a price target of $62.00.

Meta Marshall has given his Hold rating due to a combination of factors surrounding Pure Storage’s recent performance and market conditions. The company’s first-quarter results were generally in line with expectations, showing minimal impact from macroeconomic challenges such as tariffs and NAND pricing fluctuations. Although the META deal is progressing as anticipated, with expectations of 1-2 exabytes in the second half of the year, there were no significant developments this quarter, which keeps the potential impact on future revenue uncertain.
Moreover, while Pure Storage is engaging in proof-of-concept trials with other hyperscalers, any substantial revenue from these initiatives is expected to be further in the future. Despite strong sales of Evergreen//One and Evergreen//Forever, management did not attribute this to a shift towards operational expenditure solutions in response to the macro environment. Additionally, the recent departure of CFO Kevan Krysler adds a layer of uncertainty. These factors combined suggest a cautious approach, justifying the Hold rating.

Marshall covers the Technology sector, focusing on stocks such as Coherent Corp, Pure Storage, and Hewlett Packard Enterprise. According to TipRanks, Marshall has an average return of 6.7% and a 57.84% success rate on recommended stocks.

In another report released today, Barclays also maintained a Hold rating on the stock with a $57.00 price target.