UBS Upgrades Pure Storage (PSTG) to Buy

UBS upgraded Pure Storage (NYSE: PSTG) from Neutral to Buy with a price target of $16.00, citing favorable risk/reward after price decline.

Analyst Steven Milunovich commented, "Pure's stock price has fallen from $14.70 to $11.31 (-23%) on an in-line quarter. Revenue did not beat as in prior quarters, but we don't think there is any change in the underlying business (C1Q seasonality might have been a factor). Our views, both positive and negative, remain. The positive, in our view, is that Pure has caught the allflash wave at the right time with a built-from-scratch array. The concern is that the incumbent competition is not asleep, and Pure's long-term differentiation is unclear. We value the stock at $16 per share, which offers 40% potential upside, and we upgrade our rating to Buy."

For an analyst ratings summary and ratings history on Pure Storage click here. For more ratings news on Pure Storage click here.

Shares of Pure Storage closed at $11.31 yesterday.

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