Pure Storage (PSTG) PT Raised to $105 at Guggenheim

Guggenheim analyst Howard Ma raised the price target on Pure Storage (NYSE: PSTG) to $105.00 (from $93.00) while maintaining a Buy rating.

The analyst comments "We attended Pure Storage’s product & technology session for financial analysts, held in NYC this year alongside its Accelerate customer event. As we have been saying, we believe Pure is at a pivotal moment in its relatively short company history. It has impressively executed on its vision from about 15 years ago to disrupt the disk market with technology differentiation. At that time, disk was nearly 100% of the storage market, NAND flash cost well over $1/GB, and hyperscalers/public cloud was just becoming a thing. Today, disk is still most of the market, but QLC NAND flash is under $0.05/GB, and the hyperscalers (about 75% of the disk market) are eagerly looking for price performant alternatives due to AI-driven power constraints and operational necessities that are likely to only get more pronounced. Enterprises face the same challenges with disparate storage systems and data silos, especially with increased AI adoption. No other vendor, in our view, is better positioned to address both the enterprise and hyperscaler demand for flash storage. Pure’s products have evolved into an Enterprise Data Cloud that leverages its unique software IP (Purity, Pure1, Fusion) to manage vast, heterogenous pools of storage with metadata awareness and governance, for any performance tier. EDC has contributed to increased pipeline, more strategic C-level conversations, and raised FY26 full-year guidance (on the F2Q26 earnings). Meanwhile, conversations with multiple hyperscalers, as well as neoclouds and sovereign clouds, are progressing nicely, with Pure expressing confidence that landing additional customers is inevitable. The only qualm is that going forward, Pure will no longer be able to discuss quantity of shipments and deal progression with Meta, but production testing is already complete. We believe this will only make the stock and our jobs more interesting. Maintaining our Buy rating and raising PT to $105 (from $93) on a higher FCF multiple reflecting better prospects."

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