12:40 AM EDT, 05/29/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our price target by $11 to $59, 22x our FY 28 (Jan.) EPS view, below PSTG's three-year average (~27x) on significant memory cost volatility that is creating margin/demand uncertainty. We lift our FY 27 EPS view by $0.10 to $2.38 and lower FY 28's by $0.09 to $2.69. Q1 FY 27 results continue to show strength on paper, with Product Revenue (55% of total) up 55% Y/Y (vs. 25% growth last quarter), Subscription revenue (45%) growing by 17% (vs. 16%) and RPO growing by 41% (vs. 40%). Still, PSTG's pricing strategy (emphasizing stability for customers) should inherently bring margin pressure if memory prices continue to rise as we expect, with price increases (70% on average year-to-date through late April) unable to keep up. We think this dynamic presents downside risk to 2H FY 27 forecasts as higher prices raise eyebrows and demand destruction starts to emerge in certain pockets. Hyperscaler customers offer more resilience, but so far Meta (revenues set to scale in 2H) remains the only confirmed customer.