Everpure (P) is seeing solid demand and share gains that will likely drive upside into 2027, even amid guidance that was "conservatively framed" given H2 uncertainty, Morgan Stanley said in a note Thursday.
About one-third of Everpure's fiscal Q1 revenue growth was from pricing/pull-in, but the other two-thirds were "driven by volume strength and share gains across enterprise and commercial segments," the note said.
However, the company's increased 2027 guidance "still embeds prudence" as it does not have any "incremental pull-forward assumed" and there is also limited H2 visibility despite the solid demand, the investment firm said.
Guidance for H2 is still "uncertain as demand elasticity to elevated NAND pricing and timing of any demand normalization remain unclear," the note said.
The investment firm said it sees Everpure's Sept. 23 financial analyst event as an "emerging catalyst that could provide greater clarity on hyperscaler traction and longer-term growth drivers."
Morgan Stanley lifted Everpure's price target to $87 from $84, while keeping the company's equalweight rating.
Price: $72.00, Change: $-13.74, Percent Change: -16.03%