Citizens Reiterates Market Outperform on Penguin Solutions (PENG) After CES Meetings

Penguin Solutions, Inc. (NASDAQ:PENG) is one of the Hot AI Stocks to Keep on Your Radar. On January 13, Citizens analyst Rustam Kanga reiterated a Market Outperform rating on the stock with a $26.00 price target.

The rating affirmation follows firm’s meeting with company executives at the 2026 Consumer Electronics Show (CES) in Las Vegas. Firm analyst met with Penguin Solutions CEO Mark Adams and CFO Nate Olmstead at the Bellagio hotel during the technology industry event. The meeting focused on Penguin Solution’s enterprise and sovereign AI opportunities.

The firm highlighted how PENG stock has declined an estimated 0.9% year-to-date, underperforming the Russell 3000 index. Despite the recent underperformance, the firm anticipates PENG to outperform the broader market. The firm’s price target is a reflection of PENG stock’s valuation, with a particular focus on its exposure to artificial intelligence.

Penguin Solutions, Inc. (NASDAQ:PENG) is a leading AI and HPC computing company engaged in the design and development of enterprise solutions worldwide.

While we acknowledge the potential of PENG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.