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Pure Storage: Diversified Revenue Streams and Strategic Partnerships Drive Buy Rating

Pure Storage: Diversified Revenue Streams and Strategic Partnerships Drive Buy Rating

Pure Storage (PSTGResearch Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Aaron Rakers from Wells Fargo maintained a Buy rating on the stock and has a $80.00 price target.

Aaron Rakers has given his Buy rating due to a combination of factors that highlight Pure Storage’s strong financial position and growth potential. One key aspect is the absence of any single customer contributing more than 10% to Pure Storage’s revenue in FY25, indicating a diversified customer base and reduced dependency on any single client. Additionally, the company’s strategic engagement with Meta, which is expected to result in significant production deployments starting in FY27, underscores its potential for future revenue growth.
Another factor influencing the Buy rating is Pure Storage’s robust purchase commitments and inventory management. The company ended FY25 with $540.1 million in purchase commitments, reflecting its proactive approach to managing supply chain dynamics amid rising NAND prices. Furthermore, the increase in Remaining Performance Obligations (RPO) to $2.618 billion, driven by strong subscription momentum from Evergreen//One and Evergreen//Flex, highlights the company’s ability to secure future revenue streams. These elements collectively suggest a positive outlook for Pure Storage’s financial performance.

PSTG’s price has also changed slightly for the past six months – from $49.440 to $48.440, which is a -2.02% drop .

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