Maxim Group Sticks to Their Hold Rating for Pure Storage Inc (PSTG)

Maxim Group analyst Nehal Chokshi maintained a Hold rating on Pure Storage Inc (PSTG) yesterday and set a price target of $22. The company’s shares closed yesterday at $15.50, close to its 52-week low of $13.99.

Chokshi noted:

“Revenue disappoints due to large enterprise deals pushing out. Strong deferred revenue suggests strengthened retention rates. FY20 midpoint revenue guidance lowered by $35M despite just a $6M F1Q20 miss, makes us incrementally concerned reduced demand is due to increased price competition for select large enterprise customers. We expect the increased price competition to pass, maintain Hold rating and DCF-based 12-month price target of $22.”

According to TipRanks.com, Chokshi is a 4-star analyst with an average return of 7.6% and a 55.3% success rate. Chokshi covers the Consumer Goods sector, focusing on stocks such as Super Micro Computer, Palo Alto Networks, and Turtle Beach Corp.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Pure Storage Inc with a $23.73 average price target, implying a 53.1% upside from current levels. In a report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $21 price target.

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Based on Pure Storage Inc’s latest earnings release for the quarter ending January 31, the company reported a quarterly GAAP net loss of $25.76 million. In comparison, last year the company had a GAAP net loss of $64.3 million.

Based on the recent corporate insider activity of 80 insiders, corporate insider sentiment is negative on the stock.

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Pure Storage, Inc. engages in the provision of flash-based storage solutions. Its technology replaces storage systems designed for mechanical disk with all-flash systems optimized end-to-end for solid-state memory. The company was founded by John Hayes and John Colgrove in October 2009 and is headquartered in Mountain View, CA.