Lynx Equity Strategies analysts KC Rajkumar and Jahanara Nissar state they are viewing Pure Storage, Inc. (NYSE: PSTG) on the long side at present levels.
The analysts at Lynx Equity Strategies mention “The next leg of the flash storage cycle we believe will be differentiated by the adoption of NVMe-based storage interface versus the traditional SATA-based interface.”
Lynx Equity Strategies analysts KC Rajkumar and Jahanara Nissar said “On a price to NTM sales basis the stock is currently trading at 2.7x. We believe the stock has a path to a 4x P/S multiple as the a) NVMe cycle plays out and b) as the company sees increasing subscription revenue. At FY20 sales guided to $1.78B we see a return to recent highs of $28. With market cap around the $5B, the company makes an acquisition target for one of the larger peers at some point of time.”