Pure Storage's (PSTG) Q3 gross margin beat on shipments to Meta Platforms (META), and the current shortage of hard disk drives presents an opportunity for the company to gain traction, Wedbush said in a Wednesday research report.

NAND flash memory shortage is a mixed blessing as the company's offerings fill a gap, but Q3 earnings were more of a mixed bag as operating expenditure growth remains above the brokerage's forecast, according to the note.

The company is positioned to avoid gross margin disruption from higher memory pricing, given product architectures that emphasize the utilization of low-cost consumer-grade NAND, moderating the impact of NAND price changes on bill-of-materials versus peers, analysts wrote.

For fiscal Q4, Wedbush expects EPS of $0.62 on revenue of $1.03 billion. For 2026 and 2027, the brokerage expects EPS of $1.92 and $2.34, respectively, on revenue of $3.63 billion and $4.34 billion.

Wedbush reiterated its outperform rating on the stock and increased its price target to $100 per share from $90.

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