On January 7, Rosenblatt analyst Kevin Cassidy reiterated a Buy rating on Penguin Solutions, Inc. stock with a price target of $30.00. The rating affirmation followed the company's better-than-expected revenue and earnings report.
Penguin's Advanced Computing revenue increased 52% year-over-year, excluding contributions from hyperscale client Meta and discontinued Penguin Edge products. Rosenblatt stated that revenue growth should accelerate as the company expands its enterprise customer base and reduces dependence on Meta deployments.
Integrated Memory revenue grew 41% year-over-year. The firm forecasts this business segment will exceed $600 million in fiscal year 2026.
Penguin's LED segment has begun to soften, creating what the firm described as a "drag" on full-year gross margin performance. However, Rosenblatt continues to see growth in Advanced Computing and Integrated Memory segments, which it identified as the primary reason to own Penguin Solutions stock.
Penguin Solutions, Inc. trades on NASDAQ under the ticker symbol PENG. The company designs and develops enterprise solutions worldwide with a focus on AI and high-performance computing.