Pure Storage price target raised to $58 from $47 at Northland

Northland analyst Nehal Chokshi raised the firm’s price target on Pure Storage (PSTG) to $58 from $47 and keeps an Outperform rating on the shares after having hosted CEO Charlie Giancarlo and CFO Kevan Krysler and coming away believing Pure will generate operating margin expansion that will be “well above” the firm’s prior long-term assumption of 23%. The firm’s prior long-term assumption was largely premised on achieving an operating margin similar to what NetApp (NTAP) achieved in FY22 and FY23 of about 24%, but the firm now raises its terminal period operating margin forecast for Pure to 32% from 23%, the analyst tells investors.