Penguin Solutions price target lowered to $27 from $31 at Stifel

Stifel lowered the firm’s price target on Penguin Solutions (PENG) to $27 from $31 and keeps a Buy rating on the shares. Despite revenue slightly below the firm’s forecast and consensus, Penguin reported fiscal Q4 earnings slightly above the firm’s and consensus forecasts on strong operating expense control, the analyst tells investors. The net effect on growth of de-risking of hardware sales to Meta and the wind-down of the non-core Penguin Edge business is “disappointing,” Advanced Computing would grow around 40% in FY26 when stripping out these items, reflecting strength across a more diverse customer pipeline, the analyst added.