TD Cowen analyst Krish Sankar has maintained their bullish stance on PSTG stock, giving a Buy rating on November 26.
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Krish Sankar has given his Buy rating due to a combination of factors that suggest a positive outlook for Pure Storage. Despite anticipated volatility, the company’s revenue growth trajectory appears strong, with expectations of a 20% increase in 2026, surpassing the consensus estimate of 15%. This growth is driven by enterprise and Meta licensing revenues, and the potential for NAND price increases could further boost revenue. Sankar believes that the company’s management continues to execute well, maintaining the revenue growth thesis.
Additionally, while there are concerns about increased operating expenses impacting operating margins, the overall operating profit is expected to rise by 15% in 2026. Pure Storage’s potential shift in its business model for hyperscale customers, which may involve direct procurement of NAND Flash, could alter the margin profile positively. This suggests that Pure Storage might be strengthening its position in the hyperscale market, potentially engaging in more advanced discussions with companies beyond Meta. These factors collectively support Sankar’s Buy rating for Pure Storage.
In another report released on November 26, Oppenheimer also reiterated a Buy rating on the stock with a $120.00 price target.