Penguin Solutions (PENG) PT Raised to $100 at Rosenblatt
Rosenblatt analyst Kevin Cassidy raised the price target on Penguin Solutions (NASDAQ: PENG) to $100.00 (from $80.00) while maintaining a Buy rating.
The analyst commented: "Management now expects Advanced Computing/Memory to grow ~40%/~50% in FY27, while we expect non-hyperscale AI compute to nearly double to ~$600M as pipeline and bookings accelerate. Growing heterogeneous NVIDIA/AMD architectures increase the strategic value of vendor-agnostic ClusterWare. CXL is arriving faster than expected, with management targeting >10% of Memory revenue exiting FY27, implying a ~$50-60M quarterly run-rate and a path toward ~$300M in FY28. With CXL and Services inflecting in 2HFY27, we see continued operating leverage, >30% gross-margin potential, and further upside. We raise our PT to $100 from $80, based on 20x our FY28 EPS estimate of $5.01. Reiterate Buy."
