Strong Performance and Growth Potential Drive Buy Rating for Pure Storage

William Blair analyst Jason Ader has maintained their bullish stance on PSTG stock, giving a Buy rating today.

Jason Ader has given his Buy rating due to a combination of factors that highlight Pure Storage’s strong performance and potential for growth. The company reported impressive first-quarter results, surpassing consensus expectations with a 12.3% revenue growth, driven by robust demand across its product portfolio, particularly in its Storage as a Service offering and E product family. This strong demand contributed to a notable increase in total contract value bookings and a solid rise in remaining performance obligations.
Despite some challenges, such as the departure of the CFO and limited guidance upside, Pure Storage’s financial metrics remained strong, with non-GAAP product gross margin and operating margin slightly exceeding expectations. The company’s guidance for the second quarter and full year remains positive, with anticipated revenue growth and stable operating margins. These factors, combined with the company’s strategic positioning and consistent execution, underpin Ader’s confidence in recommending a Buy rating for Pure Storage.

Ader covers the Technology sector, focusing on stocks such as Box, Confluent, and N-able. According to TipRanks, Ader has an average return of 4.5% and a 54.82% success rate on recommended stocks.

In another report released today, Citi also assigned a Buy rating to the stock with a $65.00 price target.