Everpure's (P) updated fiscal 2027 guidance is reasonable, although "still very beatable," as the system average selling price continued to rise through Q2 and ended with system pricing up by triple digits, Wedbush said in a Thursday note.
While pricing is expected to continue benefiting results through the second half of fiscal 2027, Wedbush said revenue from a second top-five hyperscale customer is expected to be de minimis in fiscal 2027, with a meaningful ramp beginning in fiscal 2028.
Strong second-half revenue from Meta, however, should aid comparisons.
Everpure now expects fiscal 2027 revenue of $5.03 billion to $5.07 billion, compared with its previous guidance of $4.41 billion to $4.51 billion.
Meanwhile, fiscal 2027 non-GAAP operating profit is now expected to be $940 million to $960 million, up from $820 million to $860 million previously.
Wedbush raised its price target to $130 from $127 and maintained its outperform rating.
Price: $96.12, Change: $-12.78, Percent Change: -11.74%