Pure Storage Inc. NYSE: PSTG delivered a stellar first-quarter earnings report after the market closed on Could 29, 2024. Not surprisingly, PSTG inventory was up greater than 2% the day after the report, and analysts are rapidly expressing a bullish sentiment that will drive the inventory even increased.  

In the quarter, income of $693.48 million exceeded estimates for $680.91 by 1.85% and was 18% increased year-over-year (YOY). Nevertheless, it was the earnings that basically obtained traders excited. The 32 cents per share was 52% increased than the 21 cents per share that was anticipated. The corporate’s annual recurring income continues to develop at a formidable YOY clip, 25% to be precise.  

The corporate’s forward guidance was additionally bullish, with estimates for 10.5% income development and working margin development of 17% on a non-GAAP foundation.   

The place Does All That Knowledge Go? Pure Storage Has an Reply

Even for those who’re new to expertise, it is easy to know that coaching AI fashions requires knowledge. And never only a small quantity—these fashions want huge portions of knowledge, usually on a large scale.

So, a logical query is, the place does all that knowledge go? Pure Storage helps reply that query. The corporate gives flash memory-based server storage options with superior administration software program that assist corporations entry AI-driven insights.  

Flash storage is changing into often known as the next-gen knowledge middle. The expertise gives quicker entry instances, improved vitality effectivity, better storage density, and improved reliability in comparison with conventional knowledge facilities. Nevertheless, the corporate’s options may work in tandem with an organization’s present knowledge facilities.  

Analysts Are Upgrading Their Worth Targets for Pure Storage

If the chip sector is the vanguard in terms of investing in the way forward for AI, knowledge storage will not be far behind. Analysts realize it, and that is why they’re getting behind PSTG inventory in an enormous manner.  

Wedbush reiterated its Outperform ranking for the inventory the day earlier than earnings and raised its value goal from $50 to $70. Since then, the Pure Storage analyst rankings on MarketBeat present that 4 analysts have elevated their value targets for PSTG inventory. That listing consists of Northland Securities, which downgraded the inventory from Outperform to Sector Carry out however nonetheless raised the goal value.  

It is also important to notice that the bottom of those value targets is nineteen% increased than the present consensus value goal. 

Getting Concerned with PSTG Inventory 

There are higher choices for those who’re searching for a pure-play amongst synthetic intelligence shares. However for those who’re searching for shares vital to constructing out the AI infrastructure, there seems to be extra upside in PSTG inventory.  

Pure Storage is up greater than 76% in 2024, with a lot of that acquire occuring after the corporate’s fourth-quarter earnings report in February. At the moment, the inventory gapped up about 35%. However that is when you could return to the analyst’s updates. The best of the worth targets is $80. That might be a rise of 28%, suggesting {that a} transfer of roughly the identical magnitude might occur once more.  

MarketBeat retains observe of Wall Road’s top-rated and finest performing analysis analysts and the shares they advocate to their shoppers every day. MarketBeat has recognized the that high analysts are quietly whispering to their shoppers to purchase now earlier than the broader market catches on… and Pure Storage wasn’t on the listing.

Whereas Pure Storage at the moment has a “Reasonable Purchase” ranking amongst analysts, top-rated analysts imagine these 5 shares are higher buys.

View The 5 Shares Right here