Last Updated: 08 Nov 2024
Executive Summary
Pure Storage Inc. (PSTG) is a leading provider of data storage technology and solutions, with a market capitalization of $17.7 billion. The company has a strong financial position, with an EBITDA of $281.8 million and a profit margin of 4.5%. Analysts are bullish on PSTG, with a consensus target price of $65.73 and 13 out of 21 analysts recommending a buy or strong buy. The latest stock price of $53.93 represents a potential upside of 21.9%.
Company Overview
Pure Storage Inc. was founded in 2009 and is headquartered in Mountain View, California. The company provides a range of data storage products and services, including flash arrays, software-defined storage, and cloud storage. Pure Storage's customers include large enterprises, government agencies, and educational institutions.
Fundamental Analysis
Revenue: PSTG's revenue has grown steadily over the past several years, from $1.7 billion in 2019 to $3.0 billion in 2023. The company's revenue growth is expected to continue in the coming years, driven by increasing demand for data storage solutions.
Earnings: PSTG's earnings per share (EPS) have also grown steadily over the past several years, from $0.18 in 2019 to $0.43 in 2023. The company's EPS growth is expected to continue in the coming years, driven by increasing revenue and operating efficiency.
Profitability: PSTG's profit margin is 4.5%, which is below the industry average of 6.0%. However, the company's profitability is improving, and it is expected to reach the industry average in the coming years.
Balance Sheet: PSTG has a strong balance sheet, with $1.3 billion in cash and equivalents and $1.0 billion in debt. The company's debt-to-equity ratio is 0.7, which is below the industry average of 1.0.
Technical Analysis
Price Action: PSTG's stock price has been in a downtrend since reaching a high of $70.41 in November 2021. The stock is currently trading at $53.93, which is below its 50-day and 200-day moving averages.
Technical Indicators: The relative strength index (RSI) is at 45, which indicates that the stock is neither overbought nor oversold. The moving average convergence divergence (MACD) is below the signal line, which indicates that the stock is in a downtrend.
Support and Resistance: The stock has support at $50.00 and resistance at $60.00.
Short Term Outlook
In the short term, PSTG's stock price is likely to continue to trade in a range between $50.00 and $60.00. The stock could break out of this range if it can break above $60.00 or fall below $50.00.
Long Term Outlook
In the long term, PSTG's stock price is likely to continue to rise as the company grows its revenue and earnings. The stock could reach $70.00 or more in the next few years if the company can continue to execute on its growth strategy.
Analyst Recommendations
Analysts are bullish on PSTG, with 13 out of 21 analysts recommending a buy or strong buy. The consensus target price is $65.73, which represents a potential upside of 21.9%.
