TLDR
- Everpure stock jumped 10% Monday after Susquehanna upgraded it from Neutral to Positive
- Susquehanna raised its price target to $120 from $85, implying ~33% upside
- Demand for 2Tb QLC-based mass-capacity SSDs is picking up after nearly a year of delays
- Morgan Stanley also upgraded the stock to Overweight with a $108 price target
- Q2 FY2027 earnings are due August 26, with consensus EPS at $0.58 and revenue at $1.1B
Everpure (P) jumped 10% in early Monday trading after Susquehanna upgraded the stock from Neutral to Positive and raised its price target to $120 from $85.
The new target implies roughly 33% upside from Friday’s close. The stock opened Monday at $89.92.
Susquehanna analyst Mehdi Hosseini said recent channel checks show demand for 2Tb QLC-based, mass-capacity SSDs is finally starting to come through after nearly a year of delays.
“Combined with Everpure’s broad and diversified product portfolio, we believe this has driven a more diversified hyperscaler customer mix,” Hosseini wrote in a Monday investor note.
Hosseini said this positions the company to benefit from increased procurement of mass-capacity SSDs in the second half of 2026, particularly for key-value cache offloading applications.
Margins in Focus
Hosseini also flagged enterprise customers as another growth driver, citing infrastructure refresh cycles and storage needed for on-premise AI inferencing.
Hyperscaler revenue streams typically carry gross margins of 75% to 85%. Everpure’s most recent quarter, which included no hyperscaler product revenue, posted a GAAP gross margin of 68.7% and an adjusted gross margin of 70.1%.
That means any ramp in hyperscaler sales could give margins a meaningful lift.
Morgan Stanley also upgraded Everpure on Monday, moving to Overweight from Equal Weight and raising its price target from $87 to $108.
The broader analyst picture is fairly positive. Of 21 analysts covering the stock, 15 have Buy ratings, five have Holds, and one has a Sell. The consensus target sits at $98.30.
What’s Next
Everpure reports Q2 FY2027 results after the market close on August 26. Wall Street is looking for adjusted EPS of $0.58 and revenue of $1.1B.
For context, the company beat expectations in its last quarter. It posted EPS of $0.47 against a $0.40 estimate, and revenue of $1.05B versus the $997.88M consensus. That was 35.2% revenue growth year over year.
One thing worth watching: insiders have sold $25.8 million worth of stock over the past 90 days. That includes two director-level sales in late June.
Institutional ownership remains high at 83.42%, with Goldman Sachs more than doubling its position in Q1, picking up an additional 595,307 shares.
Everpure has a 52-week range of $54.37 to $100.59 and a market cap of approximately $29.89 billion.
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