Pure Storage Inc (NYSE: PSTG) jumped nearly 8.0% in extended trading on Wednesday after the data storage provider reported better-than-expected revenue for its fiscal second quarter and raised guidance for the future.
Should you buy Pure Storage stock?
Versus its year-to-date low, the Pure Storage stock is now up roughly 40%. Still, Danielle Shay – Director of Options at Simpler Trading is convinced it’s not out of juice yet. On CNBC’s “The Exchange”, she said:
I really like Pure Storage. It’s above a key support. I like the target of $35 a share on this one. If we can make that target, then I’m going to continue targeting upward to $40 a share.
For the full financial year, Pure Storage now forecasts $2.75 billion in revenue, including $670 million roughly this quarter. It expects $390 million of adjusted operating income on about a 14% operating margin (adjusted) in fiscal 2023. Shay added:
Tech is weak right now but Pure Storage is an incredible relative strength winner.
Wall Street also recommends that you buy Pure Storage stock as it has upside to $37 on average.
Notable figures in Pure Storage Q2 report
- Swung to a $10.9 million income versus $45.3 million loss last year
- EPS of 3 cents was much better than the year-ago 16 cents of loss
- Revenue climbed 30% on a year-over-year basis to $648.8 million
- FactSet consensus was 22 cents of EPS on $636 million in revenue
- Annual recurring revenue from subscription services was up 31%
Pure Storage ended the quarter with $1.5 billion of remaining performance obligations (up 25%) and $1.40 billion in cash, equivalents, and marketable securities, as per the earnings press release.