Barclays analyst Tom O’Malley downgraded Penguin Solutions (PENG) to Equal Weight from Overweight with a price target of $27, up from $23. The company is seeing “significant” margin compression in the second half of the year that likely continues through fiscal 2027 as memory prices remain elevated, the analyst tells investors in a research note. In addition, Barclays says Penguin’s advanced computing business continues to face a Meta headwind and is seeing projects being pushed into 2027.
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