Pure Storage, Inc. (PSTG) Target Cut to $90 as Sector Valuations Reset

We recently published an article titled 12 Best Data Storage Stocks to Buy Right Now.

On February 17, Citi lowered its price target on Pure Storage, Inc. (NYSE:PSTG) to $90 from $105 while maintaining a Buy rating, reflecting updated assumptions across the hardware and storage group ahead of upcoming fourth-quarter earnings reports. While the firm acknowledged that commentary surrounding end-market demand remains mixed, the continued Buy recommendation underscores confidence in the company’s differentiated positioning and long-term growth trajectory within enterprise storage.

During its third-quarter fiscal 2026 earnings call, Pure Storage, Inc. (NYSE:PSTG) reported revenue of $964 million, representing 16% year-over-year growth, alongside a 17% increase in operating income to $196 million and an operating margin of 20.3%. Subscription services revenue rose 14% to $430 million, accounting for 45% of total revenue, while annual recurring revenue expanded 17% to $1.8 billion, highlighting the durability of its recurring revenue model. Fourth-quarter guidance calls for revenue between $1.02 billion and $1.04 billion and operating profit of $220 million to $230 million. For the full fiscal year 2026, management expects revenue of $3.63 billion to $3.64 billion and operating profit between $629 million and $639 million. The combination of double-digit top-line growth, expanding margins, and increasing subscription penetration reinforces visibility into cash flow generation and supports a constructive long-term investment outlook.

Ninth in the list of best data storage stocks to buy right now, Pure Storage, Inc. (NYSE:PSTG) is a leading provider of all-flash data storage hardware and software solutions designed to replace traditional disk-based arrays, serving enterprise and cloud customers globally. The company was founded in 2009 and is headquartered in California.

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