Penguin Solutions initiated with a Neutral at JPMorgan

JPMorgan initiated coverage of Penguin Solutions (PENG) with a Neutral rating and $20 price target The firm says the company’s serviceable “high-margin” enterprise artificial intelligence related opportunity for the medium term drives its confidence in “robust growth” in revenue and earnings over a multi-year period. However, this is balanced by challenges in the visibility into timing of the ramp for enterprises AI deployments, the analyst tells investors in a research note. As such, JPMorgan sees limited near-term upside in the shares.