Pure Storage (PSTG) PT Raised to $77 at BofA Securities

BofA Securities analyst Wamsi Mohan raised the price target on Pure Storage (NYSE: PSTG) to $77.00 (from $68.00) while maintaining a Neutral rating.

The analyst comments "Pure delivered a strong F3Q with revs and OI above guidance. For the past year, the company has been working to sign a deal with a top-four hyperscaler, and today management announced the design win which puts Pure in the hyperscaler’s plan of record for storage in their next generation design. This win can have meaningful rev and operating income impact two years out in C26/F27 (we estimate approx. $0.50 EPS benefit in F27, see Fig 1). F25 rev guide was raised to $3.5bn (+11.5% y/y) on higher product revs as some higher velocity (under $5bn) Evergreen One opportunities converted to traditional capex sales, offset by the resulting lower TCV sales of Evergreen One. Reiterate Neutral on risk/reward balance as potential upside from AI/Hyperscale is somewhat countered by risk from weak macro."

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