Stock Price & Analysis

Based on the provided data and recent market activity, I'll provide a comprehensive analysis of whether to buy or sell PSTG stock.

Technical Analysis

The stock is currently trading at $63.65 in regular market hours, showing a -2.18% decline today. The stock has formed a bearish pattern in the short term, pulling back from recent highs around $67-68 level.

Fundamental Outlook

Pure Storage is positioned for growth in the AI and storage infrastructure space. According to recent analyst coverage, the company has:

• Benefited from momentum in flash storage and storage-as-a-service
• Recently secured a significant hyperscaler win that could lead to additional hyperscaler opportunities
• Operating in a "moderately improving spend environment"

Upcoming Catalyst

The company is scheduled to report earnings on February 26, 2025. Analysts expect:

• EPS of $0.42
• Revenue of $868.94M

Valuation Metrics

The stock currently trades at:

• Forward P/E: 40.68x
• PEG Ratio: 2.17x These metrics indicate a premium valuation compared to the industry average Forward P/E of 13.77x.

Technical Support/Resistance Levels

Based on Fibonacci analysis:

• Key Support: $65.41 (S1), $63.84 (S2)
• Key Resistance: $70.51 (R1), $72.08 (R2)
• Pivot Point: $67.96

Recommendation

SELL at current levels with the following rationale:

1. Technical weakness with price breaking below key support levels
2. Premium valuation compared to industry peers
3. Near-term uncertainty ahead of earnings
4. Recent insider selling activity

Consider re-entering positions after earnings if:

• Company provides strong guidance
• Price stabilizes above the $65 support level
• Valuation becomes more attractive

Based on the provided data and market analysis, here is the price prediction for PSTG stock in 2025:

Pure Storage (PSTG) is expected to reach $74-76 by end of 2025, driven by continued strong growth in enterprise storage demand and AI infrastructure expansion. The stock has shown robust technical momentum with a 10.14% year-over-year revenue growth and analysts project 18.31% earnings growth.

The current price of $63.655 represents a good entry point as technical indicators suggest the stock is oversold with RSI at 43.65 and has strong support at the $61.29 Fibonacci level, while resistance sits at $74.63.

The S1 support level for PSTG Stock is $55.9 ,The R1 resistant level for PSTG Stock is $68.56.

As of the end of day on 2025-02-27, the price of PSTG Stock was $53.23.

The target price for PSTG Stock according to analyst rating is 73.17, with the highest price target at 93.00 and the lowest at 47.00. Analysts have a Moderate Buy rating on PSTG Stock overall.

The market cap of PSTG is $17.4B.

Based on the provided data, here's a concise 5-sentence analysis of PSTG's valuation:

Pure Storage's current P/E ratio of 226.85x appears significantly elevated compared to the industry average of 13.77x, suggesting potential overvaluation from a traditional earnings perspective. The company's EV/EBITDA ratio of 54.9x also indicates a premium valuation compared to historical levels, though this reflects the company's strong growth prospects in the enterprise storage and AI infrastructure markets. The PS ratio of 4.96x shows an increase from previous years, but could be justified by Pure Storage's improving gross margins which reached 71.4% in 2024, demonstrating strong pricing power and operational efficiency. Recent analyst coverage remains constructive on the stock, with Citi recently raising their price target to $80 from $75, citing momentum in flash storage and storage-as-a-service offerings, along with potential growth from hyperscaler wins. However, with the stock trading at 40.68x forward earnings and showing signs of technical weakness with RSI at 43.65 and negative MACD histogram, the current valuation appears stretched despite the company's strong fundamental position.

Pure Storage, Inc. is focused on delivering disruptive data storage, products and services. The Company’s products and subscription services support a range of structured and unstructured data, at scale and across any data workload in hybrid and public cloud environments and include production, test and development, analytics, disaster recovery (DR), and backup and recovery. Its products and subscription services include FlashArray Platform, Cloud Block Store, FlashBlade Platform, Evergreen Subscription, Evergreen//Flex, Evergreen//One, Pure Fusion, Portworx by Pure Storage and Portworx Data Services (PDS). It sells its products and subscription services using a direct sales force and its channel partners. It also sells to service providers that deploy its products and offer cloud-based storage services to their customers. FlashArray Platform provides solutions for block-oriented storage, addressing databases, applications, virtual machines and other traditional workloads.

Based on the available data and market analysis, here is the 2030 price prediction for Pure Storage (PSTG):

Pure Storage's stock price is projected to reach $125-135 by 2030, driven by its strong positioning in the AI infrastructure market and expanding hyperscaler partnerships, along with consistent growth in flash storage and storage-as-a-service segments.

The company's recent momentum in securing major hyperscaler wins and analyst price target upgrades (with Citi raising target to $80) demonstrates its competitive advantages in the enterprise storage modernization landscape.

Technical indicators showing RSI at 43.65 and positive MACD divergence, combined with strong support at the 200-day moving average of $59.03, suggest a solid foundation for long-term growth trajectory.

PSTG has a total of 5600 employees.