Evercore ISI analyst Amit Daryanani has maintained their bullish stance on PSTG stock, giving a Buy rating on August 29.
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Amit Daryanani has given his Buy rating due to a combination of factors that highlight Pure Storage’s potential for growth and strong market positioning. One of the primary reasons is the improvement in flash storage economics, driven by the deployment of QLC and DFM technologies, which enhance storage density and efficiency, ultimately reducing total cost of ownership for customers. Additionally, Pure Storage’s Evergreen//Forever program eliminates the need for costly upgrades, thereby increasing customer loyalty and reducing lifecycle costs.
Another significant factor is Pure Storage’s traction in the hyperscale market, particularly with major players like Meta, which is expected to drive substantial revenue and earnings growth in the coming years. The enterprise market also remains robust, with Pure Storage benefiting from strong demand for all-flash arrays, which are projected to experience double-digit growth. Furthermore, Pure Storage’s high gross margins, supported by its differentiated software and services, are expected to lead to significant expansion in EBIT and free cash flow margins over time. These elements collectively underpin Daryanani’s optimistic outlook and the raised target price for the stock.
In another report released on August 29, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $90.00 price target.
Based on the recent corporate insider activity of 65 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PSTG in relation to earlier this year.