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Pure Storage (PSTG) is back in focus after a cluster of fresh analyst opinions, heavier options trading and shifting insider sentiment converged ahead of the company’s next earnings report.
See our latest analysis for Pure Storage.
At a share price of US$73.93, Pure Storage has seen a 30 day share price return of 5.99% but a 90 day share price return decline of 9.98%. Its 1 year total shareholder return of 13.62% and 3 year total shareholder return of about 2.6x signal that longer term holders have experienced much stronger gains than recent traders.
If this storage and data theme has caught your attention, it could be a good moment to look across the sector with our screener of 34 AI infrastructure stocks and see what else fits your watchlist.
With earnings expectations, fresh analyst targets around US$90 to US$100, and heavier options activity all swirling around a US$73.93 share price, you have to ask: is there still upside here, or is the market already pricing in future growth?
With Pure Storage last closing at $73.93 and the most followed narrative pointing to a fair value of $95.16, the gap between story and price is hard to ignore.
The adoption of Pure’s Enterprise Data Cloud architecture and software-defined solutions is accelerating among large enterprises, driven by the need to manage rapidly growing and increasingly valuable data assets in the evolving AI economy; this positions Pure to capture rising long-term revenue from digital transformation and AI/ML-driven workloads.
Curious what kind of revenue path and profit profile could support that higher fair value, along with a premium future earnings multiple that sits well above broad US tech? The full narrative lays out the numbers behind those assumptions and how they feed into that $95.16 figure.
Result: Fair Value of $95.16 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this story could look very different if AI related storage demand softens, or if Pure’s push toward subscription and cloud services stalls against tougher competition.
Find out about the key risks to this Pure Storage narrative.
That 22.3% undervaluation story sits alongside a very different signal from Pure Storage’s P/S ratio. At 7x, it is far higher than both US tech peers at 1.9x and a peer group average of 1.2x. This is even though the fair ratio points to 12.6x as a level the market could move toward.
