Stifel analyst Brian Chin reiterated a Buy rating and $27.00 price target on Penguin Solutions (NASDAQ: PENG).

The analyst commented, "Penguin Solutions reports Wednesday, aftermarket. We expect Penguin to at least meet our F2Q estimates, as further strengthening in memory prices could enable revenue to exceed our forecast. PENG previously expected revenue (in particular Advanced Computing) to accelerate in F3Q/4Q, and we would be encouraged if this trend were upheld, driven by an expanded set of customers. Remember that PENG’s FY26 revenue outlook excludes any further hardware sales to its historical 10%+ customer (Meta).One notable area to monitor is whether tight availability of key hardware/components like memory, will constrain growth. More broadly, this is the first earnings call for newly-appointed CEO Kash Shaikh. We are interested in learning more about Mr. Shaikh’s vision for the business, although we expect deployment/expansion of Penguin’s OriginAI, production-ready enterprise AI infrastructure solution, remains integral to the scalable growth opportunity.At ~8x P/E(NTM), valuation is a catalyst should conviction in the growth outlook strengthen."

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Shares of Penguin Solutions closed at $16.24 yesterday.