Pure Storage's Stock Surges Above IPO Price For The First Time After Dell-EMC Merger Deal

By Tomi KilgoreMarketWatch Pulse

Pure Storage Inc.'s stock ran up 8.4% in midday trade Monday, putting it on track to close above its initial public offering price of $17 for the first time since it went public last Wednesday. Analyst Ittai Kidron at Oppenheimer said one "ripple effect" from Dell Inc.'s $67 billion buyout of EMC Corp. was that emerging storage vendors, including Pure Storage, could not only see a lift in their business activity, "but also become price acquisition targets." Kidron said the emerging storage vendors will become the default new partners or acquisition targets for Cisco Systems Inc. , NetApp Inc. and Hewlett-Packard Co. , and others, as EMC and Dell integrate. The stock closed it's first day at $16.01, or 5.8% below its IPO price, then fell further to hit an intraday low of $15.50 on Thursday, before bouncing to close Friday at $16.60.

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