Analysts have raised their price targets for Pure Storage by as much as $15 to $22 per share, supported by recent product innovations, strong positioning in enterprise and hyperscale markets, and growing demand for AI-driven data storage solutions.

Analyst Commentary

Recent research and price target revisions underscore growing confidence in Pure Storage’s strategic positioning and financial outlook. Analysts have weighed in on both the drivers of acceleration and potential areas of caution in the company’s trajectory.

• Bullish analysts note Pure Storage’s consistent execution and robust product innovation, especially the expansion of enterprise cloud offerings and enhanced cybersecurity integrations. These factors are seen as key differentiators supporting higher valuations.
• There is consensus that the company is gaining momentum in both the enterprise and hyperscale segments. Analysts specifically mention strong performance in large customer deployments and early traction with flagship products like FlashBlade//EXA.
• Positive sentiment also centers on Pure Storage’s ability to outpace peers in driving secular growth in flash storage and capturing AI-driven demand. This trend has resulted in revenue guidance acceleration and repeated upward revisions to full-year growth targets.
• Multiple research teams point to improving fundamentals, such as stronger-than-expected quarterly results, growing recurring revenue, and the company’s success in winning new enterprise customers. These factors are cited as evidence of sustainable long-term expansion.

• Bearish analysts highlight that, despite raised price targets, some have maintained neutral or sell ratings due to perceived risks including ongoing margin pressures from investments and competitive dynamics.
• There is some caution regarding the pace of product-led growth reacceleration. Deals with hyperscalers have not yet materially impacted estimates, and Meta contributions remain minimal in the near term.
• Concerns are also raised about Pure Storage’s ability to consistently sustain mid-teens or higher revenue growth rates as sector competition intensifies and broader enterprise spending remains uneven.
• A few analysts advise that valuation multiples are being reset higher based on anticipated AI-driven storage demand. If these expectations are not met, shares could be exposed to downside risk.

What's in the News

• Kerrisdale Capital disclosed a short position in Pure Storage, citing concerns that its hyperscaler strategy will disappoint and that its core enterprise storage products are losing differentiation. The firm asserts that leading hyperscalers like Google and Amazon are unlikely to adopt Pure Storage's products due to the persistent cost advantage of HDDs for bulk storage applications (Periodical).
• Pure Storage and Cisco announced a new FlashStack Cisco Validated Design, integrating compute, storage, networking, and software to streamline enterprise AI deployments. The collaboration helps organizations move from AI pilot projects to large-scale implementation, emphasizing trusted data pipelines and a unified storage-as-a-service experience (Key Development).
• Pure Storage unveiled significant enhancements to its platform, expanding its Enterprise Data Cloud into the public cloud and launching Pure Storage Cloud Azure Native and Portworx Pure1 AI Copilot. These innovations aim to simplify hybrid cloud data management and boost AI-powered automation for enterprise customers (Key Development).
• The company issued updated fiscal year 2026 guidance, raising its full-year revenue outlook to between $3.60 billion and $3.63 billion, reflecting expected year-on-year growth of up to 14.5% (Key Development).

Valuation Changes

• Fair Value remains unchanged at $89.39 per share.
• The discount rate has risen slightly, moving from 8.00% to 8.22%.
• The revenue growth projection remains stable at 15.46% year-on-year.
• Net profit margin is unchanged at 11.08%.
• Future P/E has increased marginally from 66.01x to 66.42x.