Pure Storage (PSTG) has been "excellent" at navigating an environment with higher memory costs, giving it an advantage over its peers in fiscal Q4, Wedbush analysts said in a Monday note.

The company is scheduled to report its fiscal Q4 financial results on Wednesday.

Analysts said that while Pure Storage is affected by memory cost hikes, it has not over-provisioned its drives, using fewer actual NAND bits relative to peers. The company also uses consumer-grade flash, which lowers the per-bit cost, they added.

Wedbush said that Meta (META) shipments will rise this quarter and throughout the year, helping both sales and gross margins, but noted that new customer wins are unlikely in a high-memory-cost environment.

Analysts said that the company is "well positioned" to significantly outgrow Wedbush and consensus expectations this year as price increases are additive to bit growth.

Wedbush has an outperform rating on the stock and a $100 price target.

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