Citi has revised its price target for Pure Storage (PSTG, Financial), lowering it from $77 to $55, while maintaining a Buy rating on the stock. This adjustment comes amidst expectations of a rally in North America's communications equipment sector, following the Trump administration's decision to exempt tariffs on PCs, smartphones, and 20 other products.
Despite the potential boost from tariff exemptions, Citi has amended its data center capital expenditure and PC models, citing weak demand influenced by broader economic factors. The firm identifies stocks related to artificial intelligence servers as more favorable compared to traditional enterprise stocks, as many enterprises are expected to stick to fixed IT budgets and may hesitate to increase capital expenditures in the face of rising prices.
The analysis also anticipates significant challenges for the consumer segment, predicting that it will be the hardest hit by inflation and decreased demand.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 20 analysts, the average target price for Pure Storage Inc (PSTG, Financial) is $70.26 with a high estimate of $93.00 and a low estimate of $50.00. The average target implies an upside of 71.02% from the current price of $41.08. More detailed estimate data can be found on the Pure Storage Inc (PSTG) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Pure Storage Inc's (PSTG, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Pure Storage Inc (PSTG, Financial) in one year is $46.97, suggesting a upside of 14.34% from the current price of $41.08. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Pure Storage Inc (PSTG) Summary page.
