Pure Storage (PSTG) PT Lowered to $62 at Needham

Needham analyst Mike Cikos lowered the price target on Pure Storage (NYSE: PSTG) to $62.00 (from $80.00) while maintaining a Buy rating.

The analyst commented: "Pure Storage outperformed 2QFY25 results, but the unchanged FY25 guidance implies weaker Revenues in 4QFY25 than previously expected. Management cited elongated sales cycles for $5 Million-plus Evergreen deals, which led Pure Storage to reduce its TCV Sales forecast to 25% yr-yr growth for $500 Million (from 50% yr-yr and $600 Million, respectively). On a year-to-date basis, Pure Storage has generated $157 Million in TCV Sales - below internal forecasts. It seems the broader Infrastructure Software message that larger deal-sizes are experiencing elongated sales cycles is also impacting Pure Storage. Management commentary indicated continued progress with its primary hyperscaler candidate among others - leading the company to reiterate a targeted timeline for announcing a hyperscaler design-win by year-end."

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