Oct. 17 at 12:45 PM
$PSTG Raymond James raised the price target on Pure Storage's (NYSE:PSTG) stock to
$99 from
$88 while maintaining its Outperform rating on the shares.
"Our model now incorporates assumptions for royalties from Meta. Management has offered little disclosure, but has said the Meta project is officially in production and that it would ship 2 exabytes this year and double-digit exabytes in FY27," said analysts led by Simon Leopold.
The analysts noted that after industry discussions, they have made educated guesses about the royalty rate and margin, which results in the addition of
$165M in revenue, or about 4%, to their fiscal 2027 sales estimate and increased EPS by around 19%, or
$0.45.
The analysts envision further upside potential from additional customer license agreements.
"We have also tweaked product sales and margin, out of consideration of memory pricing dynamics. Our estimates are now among the highest on the Street, and our target goes to
$99," said Leopold and his team.
