NEW YORK (TheStreet) -- Shares of Pure Storage (PSTG) - Get Report closed higher by 4.43% to $10.60 on Wednesday as Macqaurie Research initiated coverage of the stock with an "outperform" rating and $15 price target earlier today, Barron's reports.
The Mountain View, CA-based company provides an enterprise data storage platform.
"We view Pure Storage as a storage disruptor that has a high likelihood of establishing itself as a player on the larger side of the industry barbell in the future - a rare occurrence only NetApp (NTAP) has achieved over the past twenty years," the firm wrote in an analyst note cited by Barron's.
In light of the weak secular backdrop of the enterprise storage market, Macqaurie believes M&A is unlikely in the industry. Additionally, investments need to be evaluated on their long-term potential rather than their short-term takeout possibilities.
"Pure with its differentiated product has been instrumental in causing the Industry disruption and as a result of recent product and business model innovations is poised to benefit from the move to the Cloud," the firm added.
Separately, R.W. Baird began coverage of the stock with a "neutral" rating and $12 price target.
The firm believes the competitive environment has aggressively "heated up" according to channel feedback, so investors should "stay on the sidelines" until "market share trajectory becomes clearer."