Pure Storage (PSTG) PT Raised to $90 at Evercore ISI

Evercore ISI analyst Amit Daryanani raised the price target on Pure Storage (NYSE: PSTG) to $90.00 (from $85.00) while maintaining a Outperform rating.

The analyst comments "Pure hosted its Pure Accelerate event today in NYC, beginning with a meeting with investors and analysts where it outlined its expanding role across enterprise and hyperscale customers, and AI-driven data workloads. Pure reinforced its Enterprise Data Cloud vision, along with outlining its hyperscale strategy. Our “TOP 5” takeaways include: 1) The Enterprise Data Cloud Strategy: Powered by the Purity operating system and Fusion, Pure is hoping to shift how enterprises think and approach their storage architectures and reframe storage away from siloed arrays to a cloud-like fleets, and position Pure to be the architectural standard for storage modernization. 2) AI-as-a-Catalyst: AI is driving large infrastructure investments it’s also driving customers to rethink their storage architectures. Pure noted that storage decisions are now being made by bigger decision makers than traditionally before and forcing CIOs to revisit the way they design their data centers, with a more horizontal, cloud-like storage approach. 3) Expanding Hyperscale Opportunity: Pure said it continues to engage with multiple hyperscalers on potential engagements and noted that its DFM solution has finished testing and been released for production on their end. Pure added that it has three supply agreements with top five NAND vendors, meaning that through its offerings, Pure can offer hyperscalers access to ~49% of the global NAND flash capacity. 4) Evergreen Adoption Growing: Management noted that interest from AI engagements is helping to drive better appreciation of Evergreen//One, as both customers and channel partners see the benefits of vendor managed SLAs given the complexity around designing AI-ready infrastructure and the ability to avoid obsolescence. Pure added that it has more than 1,000 EG1 customers. 5) The Network Effect: Pure highlighted that its Evergreen offering is helping it become a more integral part of its customers business ecosystem, evolving beyond just a hardware company, and closer to a platform company. The unified data plane gives customers a single operating environment that can be programmed right into a customer’s business. Net/Net: Maintain OP but raising our target to $90 (from $85)."

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