Moderating Upside Amid Margin Pressures and Elevated Investment Needs Support Hold on Pure Storage

Analyst Wamsi Mohan of Bank of America Securities reiterated a Hold rating on Pure Storage, reducing the price target to $90.00.

Wamsi Mohan has given his Hold rating due to a combination of factors tied to both margin pressure and investment needs. He expects rising memory and component costs to eventually force Pure Storage to increase prices, which should support revenue but compress product gross margins below prior expectations and well under the company’s long‑term targets.

Mohan also flags that evolving hyperscale contract structures and heavier spending on R&D and sales to pursue AI and large‑enterprise opportunities could weigh on profitability before the benefits fully materialize. Reflecting these pressures, he trims earnings estimates and lowers his price objective to $90, applying a reduced valuation multiple, which leaves only moderate upside from the current share price and supports a Hold stance.

According to TipRanks, Mohan is a top 100 analyst with an average return of 30.7% and a 63.54% success rate. Mohan covers the Technology sector, focusing on stocks such as HP, International Business Machines, and Western Digital.

In another report released on February 18, Morgan Stanley also maintained a Hold rating on the stock with a $83.00 price target.