Key insights
- Piper Sandler maintained an Overweight rating on Everpure with a $92 target, citing strong Q1 results driven by pricing increases and demand pull-ins. Despite supply chain issues, Everpure's pricing power is significant, with memory prices up 70% YTD. The company's guidance is seen as conservative, potentially leading to a beat-and-raise scenario. Growth drivers include AI modernization, cloud migrations, and storage-as-a-service adoption, with net income expected to grow this year.
Investing.com - Piper Sandler reiterated an Overweight rating and $92.00 price target on Everpure (NYSE:P) on Thursday. The stock currently trades at $69.86 with a market capitalization of $23.29 billion, though shares have delivered strong returns with a 55.5% gain over the past year and a 28% year-to-date increase.
The firm noted that pricing increases and demand pull-ins benefited the company’s first-quarter results. Memory providers including Everpure continue to pass along price increases as demand significantly outweighs supply, with prices up 70% since the beginning of the year.
Piper Sandler views the second-half guidance as prudent given uncertainties in the environment. The firm said this approach could create a beat-and-raise scenario next quarter, with Everpure’s Accelerate user conference scheduled for June and an analyst day set for September 23. According to InvestingPro analysis, net income is expected to grow this year, supporting the optimistic outlook. The platform offers 17 additional ProTips for P, along with comprehensive Pro Research Reports covering key metrics and growth drivers.
The firm noted that a lack of a new cloud win likely weighed on shares in after-hours trading. Everpure has Meta ramping, potential for other cloud providers with approximately six proofs of concept among the top 20, and orders exceeding revenue.
Additional factors cited include enterprise refresh and modernizations for AI purposes, Portworx migrations from VMware, and increased adoption of the storage-as-a-service offering given the on-premise cost and supply environment.
In other recent news, Everpure reported significant financial results for the first quarter, with revenue reaching $1.053 billion, representing a 35% year-over-year growth. This impressive performance was driven by customer pull-ins and higher pricing amid supply chain component shortages. The company also noted a substantial increase in deals exceeding $5 million across various geographies. Following these results, Everpure raised its fiscal 2027 revenue guidance to 22% growth at the midpoint, up from the previous 19% forecast.
Lake Street responded to these developments by raising its price target for Everpure to $94, maintaining a Buy rating due to the positive margin outlook. Similarly, William Blair reiterated an Outperform rating on the stock, acknowledging the company’s outperformance in both revenue and earnings. These updates reflect analysts’ confidence in Everpure’s ongoing financial strength and growth potential.
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