Pure Storage Could Likely Secure an H2 Hyperscale Win, Wedbush Says
Pure Storage (PSTG) is expected to report a Q1 beat and raise, with potential for significant upside around second half expectations and a higher probability of securing a hyperscale win, Wedbush Securities said Tuesday.The firm expects strong revenue guidance as further increases in system pricing flow through to results, particularly as sales volumes are likely to remain in-line with expectations.In the intermediate term, rising NAND pricing supports the company's NAND and memory cost advantage. Its architecture enables the use of lower cost bits, avoids over-provisioning, and in some configurations minimizes DRAM consumption, resulting in a sustainable gross margin advantage over the industry, the brokerage said.Pure Storage's strong sourcing setup and structural cost advantages position it to significantly exceed the previous outlook, particularly in H2. Its original guidance implies sales momentum considerably slowing, while stable bit shipments point to revenue growth of over 70% instead, according to the note.Wedbush kept an outperform rating on Pure Storage with a price target of $100.Price: $67.80, Change: $+2.91, Percent Change: +4.48%
