Pure Storage (PSTG, Financials) saw its shares rise by single digits in Wednesday trading following Oppenheimer's decision to initiate coverage on the data storage firm with an Outperform rating and a 12-to-18-month price target of $70.
Driven by artificial intelligence applications, Oppenheimer's perspective emphasizes Pure Storage's ability to profit from the rising need for unstructured data storage solutions. Data-intensive needs of artificial intelligence favor high-performance capacity storage systems; Oppenheimer's analyst, Param Singh, notes that "all-flash arrays are best suited" for this purpose. Singh said this trend "provides a long tail of growth for the industry."
Providing data storage and management solutions for companies, Pure Storage focuses in all-flash storage arrays meant to cut latency, lower IT project risk, and maximize cost-efficiency.
Singh also out that all-flash arrays are expected to rise at an 8.5% compound annual growth rate from 2023 to 2028, thereby reaching an estimated $17 billion. Singh underlined a continuous industry shift toward these arrays. Singh anticipates Pure Storage will take advantage of this change and its software feature allowing direct data writing to flash memory. Singh claims that this benefit sets Pure Storage to grab long-term market share from rivals including Hewlett Packard Enterprise (HPE, Financials) and Dell Technologies (DELL, Financials).
Pure Storage is expected to announce its fiscal third-quarter 2025 results on Dec. 3; the stock opened the market at $50.16 apiece.
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