PENG Stock Falls Ahead Of Q3 Report – This Analyst Expects A ‘Solid Beat-And-Raise’ Quarter

• Wall Street is largely bullish on the company, with six of seven analysts covering the stock rating it a ‘Buy’ or higher, and one rating it a ‘Sell.’
• Rosenblatt said on Monday it expects momentum in Penguin’s advanced computing and integrated memory product lines to accelerate heading into the second half of the year.
• The firm raised its price target on PENG stock to $75 from $65, implying roughly 11% upside from Monday’s closing price.

Shares of AI infrastructure company Penguin Solutions (PENG) traded nearly 4% lower on Tuesday ahead of its fiscal third-quarter earnings report, with analysts remaining largely bullish on the company.

According to data from Koyfin, the consensus revenue estimate is $421 million, implying roughly 30% year-over-year growth, while adjusted earnings per share (EPS) are expected to be $0.56.

Six of the seven analysts covering the stock rate it a ‘Buy’ or higher, and one rates it a ‘Sell,’ according to Koyfin data. Retail sentiment on Stocktwits has also remained ‘Bullish’ over the last 24 hours.

Wall Street’s Take On PENG

Rosenblatt expects a “solid beat-and-raise” and momentum in its advanced computing and integrated memory product lines to accelerate heading into the second half of the year.

Analyst Kevin Cassidy pointed out that investors have moved PENG’s valuation from 6.7x to 22.6x forward earnings over the past three months, as the AI market continues to rely on Penguin’s products and services.

“For years, we have highlighted PENG shares as the best value in the AI market,” Cassidy said. “Corporations are realizing productivity gains through agentic workloads, which require increased CPU and GPU utilization and faster and denser memory configurations. Penguin's ability to design, build, deploy, and service AI systems for these workloads positions the company for this market.” 

Rosenblatt raised its price target on PENG stock to $75 from $65, implying roughly 11% upside from Monday’s closing price.

PENG shares have more than doubled in value so far this year, outpacing the benchmark S&P index.

PENG Was Recently Chosen As An Nvidia Partner

In late June, the company was chosen by Nvidia (NVDA) as an “AI factory Specialized Partner” after successfully completing training and meeting the requirements to operate AI infrastructure powered by the chip giant’s GPUs.

The company had said that Nvidia's certification validated its expertise in designing, building, deploying, and managing AI infrastructure for enterprises, hyperscale customers, and neocloud providers.

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