Oppenheimer Coverage of Key Storage and Infrastructure Stocks

Oppenheimer analysts initiated coverage on five significant storage and infrastructure stocks on Wednesday, providing insights into their growth potential within the industry.

Rubrik

Rubrik was rated as Perform, indicating that its security-focused data storage strategy positions it well against rising data breach threats and the shift to as-a-service platforms. However, analysts expect Rubrik to operate at a loss for the next three years and will remain sidelined until a clearer path to profitability emerges within four to six quarters.

Pure Storage (NYSE:PSTG)

Pure Storage received an Outperform rating with a target price of $70. Analysts are optimistic about Pure Storage’s potential in the expanding all-flash array market, driven by the increasing amount of unstructured data from AI applications. The robust customer base and growing storage-as-a-service offerings could lead to significant margin improvements.

Nutanix (NASDAQ:NTNX)

Nutanix was also rated Outperform, with an $80 target price. The company is benefitting from a shift in industry demand toward HyperConverged Infrastructure (HCI). Oppenheimer noted Nutanix’s competitive edge due to VMware’s recent price increases and its strong position in data-driven AI applications, anticipating steady customer growth and margin enhancements.

Commvault

Commvault was given an Outperform rating with a target price of $200, highlighting its backup-as-a-service (BaaS) and disaster-recovery-as-a-service (DRaaS) offerings. The company's SaaS model addresses security issues, and analysts expect strong growth in its SaaS Annual Recurring Revenue (ARR) over the coming years.

NetApp (NASDAQ:NTAP)

Lastly, NetApp was rated as Perform, with analysts pointing to “near-term challenges” in its shift toward storage-as-a-service, facing potential growth obstacles in its Public Cloud segment. They predict it may take up to six quarters for NetApp to stabilize and return to a higher growth trajectory.