Pure Storage (PSTG) Sees 20.8% Decline Due to Profit-Taking
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
Updated: 1 hour ago0mins
Pure Storage Performance: Pure Storage, Inc. (NYSE:PSTG) experienced a significant decline of 20.83% last week due to profit-taking after a previous rise, despite reporting a 16% increase in total revenues to $964 million year-on-year.
Net Income Decline: The company's net income fell by 13.8% to $54.8 million compared to the previous year, prompting a cautious outlook despite raising revenue growth guidance for the fiscal year.
Revised Growth Guidance: Pure Storage increased its revenue growth forecast for the full fiscal year to between $3.63 billion and $3.64 billion, reflecting a more optimistic outlook than earlier estimates.
Investment Perspective: While acknowledging Pure Storage's potential, the commentary suggests that certain AI stocks may offer better investment opportunities with higher returns and lower risks.
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Analyst Views on PSTG
Wall Street analysts forecast PSTG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSTG is 93.94 USD with a low forecast of 55.00 USD and a high forecast of 120.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
13 Buy
4 Hold
1 Sell
Moderate Buy
Current: 72.200
Low
55.00
Averages
93.94
High
120.00
Current: 72.200
Low
55.00
Averages
93.94
High
120.00
UBS
Sell
maintain
$55 -> $60
2025-12-03
New
Reason
UBS
Price Target
$55 -> $60
2025-12-03
New
maintain
Sell
Reason
UBS raised the firm's price target on Pure Storage to $60 from $55 and keeps a Sell rating on the shares.
TD Cowen
Buy
maintain
$85 -> $100
2025-12-03
New
Reason
TD Cowen
Price Target
$85 -> $100
2025-12-03
New
maintain
Buy
Reason
TD Cowen raised the firm's price target on Pure Storage to $100 from $85 and keeps a Buy rating on the shares. The firm said the problem is not that Street numbers will come down, but the company is guiding for a significant increase in OpEx which puts the OM expansion thesis on the sidelines, for now. There may be more volatility ahead but the trajectory seems to be on the right path.
Morgan Stanley
Erik Woodring
Equal Weight
downgrade
$90 -> $83
2025-12-03
New
Reason
Morgan Stanley
Erik Woodring
Price Target
$90 -> $83
2025-12-03
New
downgrade
Equal Weight
Reason
Morgan Stanley analyst Erik Woodring lowered the firm's price target on Pure Storage to $83 from $90 and keeps an Equal Weight rating on the shares. Results show clear outperformance compared to legacy storage peers and hyperscale shipment upside is a positive, but a possible mix shift to subscription and continued investment intensity limit earnings flow-through in FY27, the analyst tells investors in a post-earnings note.
Lake Street
Eric Martinuzzi
Buy
maintain
$80 -> $92
2025-12-03
New
Reason
Lake Street
Eric Martinuzzi
Price Target
$80 -> $92
2025-12-03
New
maintain
Buy
Reason
Lake Street analyst Eric Martinuzzi raised the firm's price target on Pure Storage to $92 from $80 and keeps a Buy rating on the shares following what the firm calls "another solid quarter." Shares are off in the after-hours, which the firm views as perhaps in reaction to the rising cost of goods sold commentary as Pure noted excess macro demand is driving increased commodity pricing, which is putting pressure on the company's supply chain. However, the firm believes the company will be able to "manage through the near-term turbulence," the analyst tells investors.
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About PSTG
Pure Storage, Inc. is a data management and storage company. The Company is focused on delivering a disruptive data storage platform, which supports a range of structured and unstructured data at scale and across any data workloads in on premises, cloud and hosted environments and includes mission-critical production, test and development, analytics, disaster recovery, backup and restore, artificial intelligence (AI) and machine learning. Its integrated hardware systems include Evergreen Architecture, FlashArray, and FlashBlade. Its cloud-native storage includes Portworx by Pure Storage, Portworx Data Services, Cloud Block Store, Evergreen//One, and Evergreen//Flex. Its Pure Software includes Purity, Pure1, and Pure Fusion. Its Pure1 is a cloud-based data storage management plane, brings the convenience of cloud storage to on premises storage. The Company sells its products and subscription services using a direct sales force and its channel partners.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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