Analyst Asiya Merchant from Citi maintained a Buy rating on Pure Storage (PSTG – Research Report) and keeping the price target at $65.00.
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Asiya Merchant has given his Buy rating due to a combination of factors that highlight Pure Storage’s strong market position and growth potential. The company demonstrated robust revenue performance despite challenging macroeconomic conditions, indicating resilience and effective management strategies. Additionally, the management’s commitment to maintaining FY26 guidance reflects confidence in their business outlook, even amidst uncertainties like tariffs and international relations.
Furthermore, Pure Storage’s subscription revenue, particularly through its Evergreen One offerings, provides a stable and predictable income stream, which is appealing in uncertain markets. The introduction of new products, such as Flashblade Exa, is expected to enhance the company’s brand and contribute to market share growth over time. The company’s guidance on product and subscription margins also suggests a healthy financial outlook, with product margins expected in the mid-60s and subscription margins around 77%, supporting the Buy recommendation.
In another report released yesterday, Wells Fargo also reiterated a Buy rating on the stock with a $80.00 price target.