Why Analysts Are Rewriting the Pure Storage Story After New Bullish Developments
Pure Storage stock has seen its Fair Value Estimate rise slightly from $89.39 to $92.21. This reflects a growing optimism among analysts about the company’s outlook. The modest increase is largely driven by recent reports highlighting stronger revenue momentum and innovative product advances that reinforce Pure Storage’s competitive position in the evolving data storage market. Stay tuned to discover ways to monitor these shifts and remain informed as the narrative continues to develop.
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Analyst sentiment on Pure Storage has been largely positive, with a number of major firms raising their price targets and pointing to strong execution and momentum. Still, a range of views persists, reflecting both optimism and ongoing caution regarding the company’s valuation and future growth trajectory.
🐂 Bullish Takeaways
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JPMorgan raised its price target to $110 and maintained an Overweight rating, pointing to near-term revenue and earnings upsides, especially for companies leveraging artificial intelligence. They believe this performance will help reassure investors amid concerns about sustained AI demand.
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Needham increased its target significantly to $100 (from $85), commending Pure Storage’s expanding Enterprise Data Cloud and enhanced cybersecurity features developed in partnership with companies like CrowdStrike and Veeam.
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Guggenheim set a new price target of $105 (up from $93) and emphasized Pure Storage’s long-term execution and strong positioning to meet the needs of both enterprise and hyperscaler clients. They believe no other vendor is as well positioned to address growing flash storage demand.
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Evercore ISI and Piper Sandler underscored continued success in AI-driven workloads and market share gains, following product events and analyst meetings, leading to price target hikes to $90 and $92, respectively.
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Lake Street and Citi highlighted broad-based product strength and strong guidance for revenue acceleration, raising targets to $80 and $81. Buy ratings were echoed by TD Cowen and Needham, with price targets moving to $85 in both cases.
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Analysts generally pointed to Pure Storage’s robust execution, differentiated technology, and a growing presence in both enterprise and hyperscale segments as key drivers behind their positive outlook and upward revisions.
🐻 Bearish Takeaways
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Morgan Stanley raised its target to $90 from $72 but maintained an Equal Weight rating, expressing reservations about Pure Storage’s premium valuation and a reliance on enterprise customers. They seek evidence of broader market adoption before expressing more enthusiasm.
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BofA, while lifting its target to $95 and $80 in different reports, has kept a Neutral stance. They remain cautious about the pace of product growth reacceleration, note potential margin risks, and highlight uncertainty regarding the impact of hyperscaler deals on estimates.
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UBS, despite a price target increase to $55 (from $50), continued with a Sell rating, noting better guidance but limited contributions from major customers like Meta in the near term.
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Northland also raised its target to $71 but maintained a Market Perform rating, reflecting a more cautious view even after solid quarterly results.
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Bearish and neutral analysts frequently cited high valuation, competitive dynamics, and questions about sustaining high growth rates as key reservations tempering their outlooks.
Taken together, most analysts reward Pure Storage for its strong execution, product innovation, and leadership in data storage. However, concerns linger over valuation levels and the need for broader customer adoption. The elevated number of upward price target revisions underscores growing optimism, yet some on Wall Street remain cautious until the company demonstrates durable expansion beyond its core markets.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!
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Kerrisdale Capital has publicly announced a short position on Pure Storage, expressing skepticism about the effectiveness of the company’s hyperscaler strategy and arguing that cost advantages for bulk storage still favor traditional HDDs over flash-based solutions.
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Pure Storage and Cisco have introduced a new FlashStack Cisco Validated Design. This integrates compute, storage, networking, and software to support enterprise AI deployments and aims to accelerate customers’ transition from pilot projects to production environments.
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The company recently enhanced its Pure Storage Platform by expanding the Enterprise Data Cloud into the public cloud through the launch of Pure Storage Cloud Azure Native, and unveiling AI-driven features such as Pure1 AI Copilot, designed to simplify hybrid and multi-cloud management.
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Pure Storage has raised its revenue guidance for fiscal year 2026. The company now projects between $3.60 billion and $3.63 billion in revenue, reflecting expected growth of 13.5% to 14.5%.
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Fair Value Estimate has risen slightly from $89.39 to $92.21, reflecting increased analyst optimism.
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Discount Rate has declined marginally from 8.22% to 8.21%, suggesting a minor decrease in perceived investment risk.
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Revenue Growth projection has increased moderately from 15.46% to 15.54%, indicating a slightly more bullish sales outlook.
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Net Profit Margin estimate has edged down from 11.08% to 11.06%, implying a small expected contraction in profitability.
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Future P/E ratio has increased from 66.42x to 68.50x, which points to higher valuation expectations for future earnings.
A Narrative is more than just numbers; it is a story that explains why investors believe a company like Pure Storage is worth a particular value. Narratives on Simply Wall St connect key business events, forecasts, and fair value estimates, helping you see the “why” behind every price. Millions of investors use Narratives to track dynamic updates as new data, news, or earnings are released. By comparing Fair Value to the current Price, Narratives make knowing when to buy or sell easier and clearer.
See the original Narrative for Pure Storage and stay ahead of every key development: Expanding Data Cloud Solutions Will Strengthen Market Presence Amid Rising Demand
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Track how Pure Storage’s cloud and subscription growth could drive long-term revenue, profitability, and predictability.
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Gauge the company’s progress in winning major hyperscaler partnerships and navigating intense competition and shifting demand.
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See how new business milestones, financial targets, and valuation insights are reflected as the Narrative updates in real time.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include PSTG.
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