Analysts See Huge Upside In Pure Storage Post Q3 Beat

Analysts raised price targets on Pure Storage Inc PSTG following the Q3 beat.

• The enterprise data storage provider reported third-quarter FY22 revenue growth of 37% year-on-year to $562.7 million above the consensus of $530.8 million. Adjusted EPS of $0.22 beat the consensus of $0.12.
• Pure Storage sees Q4 revenue of $630 million, above the consensus of $602.2 million.
• Pure Storage sees FY22 revenue of $2.1 billion, above the consensus of $2.04 billion.
• Keybanc analyst Steve Enders maintained an Overweight and raised the price target from $30 to $34, implying a 13% upside.
• Lake Street analyst Eric Martinuzzi raised the price target to $34 from $31 and kept a Buy.
• Deutsche Bank analyst Sidney Ho raised the price target to $38 from $32 and reiterated a Buy. 
• The analyst was impressed with Pure Storage's Q3 results and Q4 guidance, saying the company meaningfully beat expectations on revenue and operating income and appears to be navigating well through the challenging supply chain environment. 
• The demand environment for Pure appears to be stronger than anticipated a few months ago.
• Morgan Stanley analyst Katy Huberty raised the price target to $33 from $27, implying a 10% upside, and maintained an Equal Weight though she is "more constructive on another clean quarter." 
• Following the company's Q3 report, Huberty raised her FY22 and FY23 revenue estimates by 3% and 4%, respectively, which led to her higher price target.
• Wedbush analyst Matt Bryson raised the price target to $33 from $25 and kept it Neutral.
• Northland analyst Nehal Chokshi raised the price target to $40 from $36 and kept an Outperform.
• Price Action: PSTG shares traded higher by 9.9% at $29.98 on the last check Wednesday.