Six months ago, most investors still knew this company as Pure Storage (PSTG). In February, the flash-memory storage maker rebranded to Everpure (P) and struck a deal to acquire 1touch.io, a data-intelligence firm, betting its future on more than hardware alone.
On Thursday, August 27, that bet started paying off in a way Wall Street can no longer ignore.
Everpure makes flash-based storage systems and data-management software for large enterprises and cloud providers. The company built its name disrupting hard-disk-drive incumbents with faster, more efficient flash arrays, then added subscription-based storage as a second growth engine.
Bank of America upgraded Everpure to Buy from Neutral on Thursday and raised its price objective to $150 from $90, according to a BofA Research note shared with TheStreet.
Analysts Wamsi Mohan, Ruplu Bhattacharya and Ryan Seungin Choi pointed to accelerating hyperscaler demand and a widening addressable market as the reasons for the shift.
Everpure posted revenue of $1.19 billion, up 38% year over year, marking its fourth straight quarter of accelerating growth. Shares closed up 5.92% to $108.90 and added another 1.93% in after-hours trading, according to Investing.com.
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Margins are expanding even as unit sales slow
Everpure’s product gross margin came in at 66.2% for the quarter, near the low end of its 65% to 70% target range, according to the BofA note. Management is deliberately holding prices there to capture market share rather than maximize near-term profit.
That strategy is working. Non-GAAP operating profit jumped 77% to $230 million, and operating margin expanded 430 basis points year over year to 19.4%, the note said.
Higher prices, a richer product mix and more capacity per system are offsetting a decline in unit volumes, a trade-off the company’s finance chief called intentional on the earnings call, according to Yahoo Finance.
A subscription business is outgrowing product sales
Everpure’s Evergreen//One subscription service, which rents storage capacity instead of selling hardware outright, is growing faster than the core business. Storage-as-a-Service contract value rose 121% to $277 million, pushing the program’s annualized run rate above $1 billion, according to the note.
Subscription annual recurring revenue climbed 20% to $2.1 billion, and remaining performance obligations, a measure of contracted future revenue, grew 44%.
That combination suggests reported revenue may still understate real demand, since much of the growth sits in multiyear contracts that recognize slowly over time.
Nearly the entirety of Wall Street already agrees with BofA
BofA’s upgrade arrives well after most of Wall Street had already turned bullish. Citi, Susquehanna, and Morgan Stanley each upgraded the stock to buy-equivalent ratings in early August, following a design win with a second top-five hyperscale customer, according to stockanalysis.com.
Several more firms raised targets after this week’s earnings beat.
- JPMorgan and Morgan Stanley both maintained Overweight ratings, boosting their price targets to $145 (from $130) and $119 (from $108), respectively.
- Wedbush maintained an Outperform rating and boosted the price target to $130 from $127.
- Needham and Northland both raised targets Thursday, to $140 and $128 respectively.
- TD Cowen led the bullish wave with a Street-high target of $170, while Guggenheim reiterated its Buy rating with a $150 target, perfectly matching BofA’s new outlook.
Even after BofA’s jump, the 21 analysts’ twelve-month average price target for Everpure sits at $125.90 (ranging from a low of $80.00 to a high of $170.00), representing a forecasted upside of 27.12% from the current price of $99.04, according to MarketBeat.
That gap shows how far individual estimates have already moved ahead of the blended Wall Street consensus.
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The real test arrives when hyperscaler revenue lands
BofA’s new target rests on a valuation shift as much as a business one. The firm now values Everpure at 37 times its estimated 2028 free cash flow, up from a multiple equivalent to 27 times previously, reflecting more confidence in durable, subscription-driven cash generation, according to the BofA note.
That confidence carries a deadline. BofA expects meaningful hyperscaler revenue only from fiscal 2028 onward, meaning today’s rally is pricing in a growth story that hasn’t fully arrived yet.
Everpure’s Sept. 23 investor day is the next moment management will need to defend that timeline.
BofA also flagged risks to its own thesis: an extended economic slowdown, rising component costs and competition from established rivals willing to discount deeply for key accounts.
Hyperscale contracts tend to be lumpy, and any delay in signing new deals could slow the growth investors are now paying up for.
Everpure’s rise mirrors a wider shift across data infrastructure, where flash memory and subscription pricing are replacing older storage models as AI workloads multiply data volumes.
The real question for investors is whether hyperscalers keep paying a premium for differentiated hardware once cheaper alternatives inevitably catch up, a test that will define Everpure’s next chapter more than any single price target.
