Susquehanna downgrades Pure Storage to Neutral as hyperscaler revenue scales

As previously reported, Susquehanna analyst Mehdi Hosseini downgraded Pure Storage (PSTG) to Neutral from Positive with an unchanged price target of $100. While stating that the firm is “less concerned” about margins, it notes that “scaling” hyperscaler revenue will take longer than anticipated. The path to scaling the 2EB footprint and associated software revenue remains unclear, so the firm prefers to step to the sideline until there is greater clarity or what it would view as a “compelling risk/reward,” the analyst tells investors.