Pure Storage price target lowered to $40 from $42 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Pure Storage to $40 from $42 and keeps an Overweight rating on the shares. Despite a fiscal Q3 beat, Pure’s outlook “surprised meaningfully to the downside” as customers increasingly opt for subscription offerings and large orders are delayed. Despite the near term headwinds, the firm remains optimistic on Pure being a share gainer in the fastest growing portion of the market, the analyst tells investors.