Pure Storage price target lowered to $55 from $77 at Citi

Citi lowered the firm’s price target on Pure Storage (PSTG) to $55 from $77 and keeps a Buy rating on the shares. The firm expects a rally in the North America communications equipment group on the Trump administration reciprocal tariff exemptions on PCs, smartphones, and 20 other products announced over the weekend. That said, Citi lowered its data center capex and PC models to reflect “macro induced “weak demand. The firm prefers artificial intelligence server exposed stocks to enterprise, saying many enterprises maintain a fixed IT budget and will be reluctant to raise capex in response to price increases. The analyst expects the consumer segment to get “hit the worse” on inflation and lower demand.