Jefferies Raises Price Target on Pure Storage, Inc. (PSTG) Following 3Q; Reiterates Hold

Jefferies reiterated a Hold rating on Pure Storage, Inc. (NYSE: PSTG), and raised the price target to $13.50 (from $13.00), following the company's 3Q earnings report. Pure reported revenue of $197M, beating Consensus of $192M. EPS hit ($0.10), well exceeding the Street's ($0.15) estimate.

Analyst James Kisner commented, "Q3 results and guidance were above the Street. Q3 product gross margin was below Consensus; Pure blamed the ramp of Flash Blade. However, Pure showed better-than-expected operating leverage. We're encouraged by solid execution, but the potential headwinds generated by the incumbency advantage of legacy vendors as well as the overhang to valuation driven by a lack of investor confidence in the storage market give us pause. Maintain Hold."

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 $13.95 yesterday.

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