Pure Storage (PSTG) Seen as 'Underappreciated' at Oppenheimer'; Rating Raised to Outperform
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(Updated - August 31, 2016 9:16 AM EDT)
Oppenheimer upgraded Pure Storage (NYSE: PSTG) from Perform to Outperform with a price target of $15. Analyst Ittai Kidron thinks the company's potential is underappreciated and he said "too much negativism is built-in."
"We're bullish on Pure's progress toward CF break-even and profitability, and its ability to capitalize on differentiated technology, AFA growth, and on expansion opportunities with new products (especially FlashBlade), new customers, and internationally. We believe concerns regarding GM declines are an overreaction, and that within two to three quarters a recovery and potential expansion are possible as FlashBlade comes up its production curve," said Kidron.
The analyst added, "Pure's focused on the right part of the storage market and has yet to fully benefit from expansion opportunities with SMB (m10) and large-scale AFA deployments (FlashBlade). Given the multiple growth vectors and steady progress toward profitability and positive cash flow, we believe too much negativism is builtin on the near-term GM dip."
Shares of Pure Storage closed at $11.69 yesterday.
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