Investing.com -- Oppenheimer analysts initiated coverage on five key storage and infrastructure stocks on Wednesday, offering insights into their growth potential within the industry.
Rubrik was started at Perform, reflecting Oppenheimer’s view that Rubrik’s security-focused data storage strategy is well-positioned to benefit from the rising threat of data breaches and the shift to as-a-service platforms.
However, they stated: “We expect Rubrik to remain at an operating loss for the next three years and begin coverage on the sidelines until we have a clear line of sight to operating profitability four to six quarters out.”
Pure Storage (NYSE:PSTG) received an Outperform rating with a $70 price target. Oppenheimer analysts are optimistic about Pure Storage's prospects in the expanding all-flash array market, driven by growing unstructured data from AI applications.
They noted that Pure Storage’s strong customer base and expanding storage-as-a-service offerings are positioned to generate significant margin improvement.
Nutanix (NASDAQ:NTNX) was also rated at Outperform, with an $80 target price. The company “is a beneficiary of the industry demand shift toward HyperConverged Infrastructure (HCI),” said Oppenheimer.
The firm also noted the company’s opportunity to capitalize on competitors like VMware (NYSE:VMW), which faces resistance due to recent price hikes. The report highlighted Nutanix’s position in data-driven AI applications, expecting consistent customer growth and margin gains.
For Commvault, Oppenheimer issued an Outperform rating with a $200 price target, pointing to its backup-as-a-service (BaaS) and disaster-recovery-as-a-service (DRaaS) offerings. The firm praised Commvault's ability to address security concerns through its SaaS model, expecting it to see strong SaaS ARR growth over the next few years.
Lastly, NetApp (NASDAQ:NTAP) was rated as Perform, as Oppenheimer noted “near-term challenges” in NetApp’s shift toward storage-as-a-service, with potential growth headwinds in its Public Cloud segment. The analysts anticipate that it may take up to six quarters for NetApp to stabilize and return to higher growth.