Why Pure Storage Stock Was Zooming Higher This Week

What happened

Next-generation data storage company Pure Storage (PSTG 19.07%) was next-level on the stock exchange this week. According to data compiled by S&P Global Market Intelligence, as of Friday morning week-to-date, the company’s share price was up by more than 24%. It isn’t hard to discern the reason why.

So what

Pure Storage wowed investors with its first quarter of fiscal 2024 results, published after market hours on Wednesday. Although the specialty tech company’s revenue slid on a year-over-year basis, by 5% to just over $589 million, it still crushed the consensus analyst estimate of nearly $560 million.

The story was the same on the bottom line, with non-GAAP net income shrinking to $24.7 million — $0.08 per share — from the year-ago profit of $79.2 million. Those prognosticators were expecting worse, though, with an average $0.04 per share estimate. 

Pure Storage scored a trifecta: In addition to the top- and bottom-line beats, the company also topped expectations for revenue guidance. It’s forecasting that it’ll earn $680 million, comfortably above the $657 million collective analyst projection.

Now what

Pure Storage management isn’t the only group of people looking confidently into the future. After the quarterly results were published, several analysts raised their price targets on the stock.

While none of these represented drastic changes, taken together they helped boost investor sentiment. A typical boost was made by Deutsche Bank‘s Sidney Ho, who added $4 to his level for a new estimation of $36 per share. Similarly, Bank of America Securities’ Wamsi Mohan upped his price target; it’s now $33 per share from the preceding $30.

Bank of America is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America. The Motley Fool has a disclosure policy.