Citi has revised its price target for Pure Storage (PSTG, Financial), lowering it from $77 to $55, while maintaining a Buy rating on the stock. This adjustment comes amidst expectations of a rally in North America’s communications equipment sector, following the Trump administration’s decision to exempt tariffs on PCs, smartphones, and 20 other products.
Despite the potential boost from tariff exemptions, Citi has amended its data center capital expenditure and PC models, citing weak demand influenced by broader economic factors. The firm identifies stocks related to artificial intelligence servers as more favorable compared to traditional enterprise stocks, as many enterprises are expected to stick to fixed IT budgets and may hesitate…
