Pure Storage, Inc. (PSTG) Gains Traction as Wall Street Raises Expectations

Pure Storage, Inc. (NYSE:PSTG) is among the best hardware stocks to buy according to analysts. As of December 8, consensus opinion on Pure Storage, Inc. (NYSE:PSTG) is largely favorable, with more than two-thirds of analysts covering the stock assigning a ‘Buy’ rating. While the target price ranges from $60 to $120, the median price target of $100 implies about 40% upside from the current price.

On December 3, TD Cowen lifted the price target on Pure Storage, Inc. (NYSE:PSTG) to $100 from $85, while keeping a ‘Buy’ rating on the stock, as reported by TheFly. This upward revision comes as analysts assessed the company’s operating margin expansion prospects, which they believe are temporarily stalled due to potential increases in operating expenses. Although volatility remains, the firm noted that the road ahead appears bright.

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TD Cowen sees the company’s financial model as dependent on winning hyperscale customers. A testament to this is the company’s forecasted 17% operating margin for 2025, which is lower than the competitor NetApp’s anticipated 29% for the same period. Despite this, Pure Storage, Inc. (NYSE:PSTG) has sustained nearly 13% revenue growth in the past year, reaching $3.48 billion. As management continues to focus on its business strategy, the company’s revenue growth game remains strong, TD Cowen concluded.

Pure Storage, Inc. (NYSE:PSTG) is a California-based provider of data storage and management technologies solutions. Founded in 2009, the company offers Purity software, FlashArray integrated hardware systems, and FlashBlade integrated hardware systems.

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