BMO Capital Starts Pure Storage (PSTG) at Outperform

BMO Capital initiates coverage on Pure Storage (NYSE: PSTG) with a Outperform rating and a price target of $25.00.

Analyst Tim Long commented, "We are initiating coverage of Pure Storage with an Outperform rating and a price target of $25. We believe the disruptive move in the storage industry toward all-flash arrays (AFA) will go faster than most expect. We expect AFA revenues to grow by a nearly 30% CAGR from 2014 through 2019. Pure should gain share based on its first-mover advantage and growing installed base. We also believe that the innovative Evergreen model will help Pure not only win incremental business, but also maintain customers at a higher rate than the industry. Although the company is still almost two years from profitability, we believe the stock works as revenues keep surprising to the upside."

For an analyst ratings summary and ratings history on Pure Storage click here. For more ratings news on Pure Storage click here.

Shares of Pure Storage closed at $17.56 yesterday.

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