Everpure (P) shares climbed 10% in early Monday trading after receiving two analyst upgrades on the same day, with Susquehanna and Morgan Stanley both turning more bullish on the stock.

Susquehanna upgraded Everpure from Neutral to Positive and raised its price target to $120 from $85, implying roughly 33% upside from Friday's close. The stock opened Monday at $89.92.

Susquehanna analyst Mehdi Hosseini said recent channel checks indicate that demand for 2Tb QLC-based, mass-capacity SSDs is finally starting to materialize after nearly a year of delays. QLC (quad-level cell) NAND stores four bits per memory cell, enabling higher storage density at lower cost per gigabyte — a combination that matters for data center operators scaling AI and cloud infrastructure.

"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, a technique that moves cached data off more expensive DRAM onto high-capacity solid-state storage to reduce bottlenecks in large-scale computing workloads.

Margin Expansion Potential

Hosseini also identified enterprise customers as an additional growth driver, citing infrastructure refresh cycles and the storage requirements of on-premise AI inferencing. As more enterprises deploy AI models in-house, demand for high-capacity, cost-effective storage has grown alongside the broader AI infrastructure investment cycle.

Hyperscaler revenue streams typically carry gross margins of 75% to 85%, reflecting the large-volume, multi-year contract nature of cloud provider relationships. 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%. Any ramp in hyperscaler sales could therefore provide a meaningful lift to margins.

Morgan Stanley also upgraded Everpure on Monday, moving from Equal Weight to Overweight and raising its price target from $87 to $108.

The broader analyst consensus is largely positive. Of 21 analysts covering the stock, 15 maintain Buy ratings, five have Hold ratings, and one has a Sell rating. The consensus price target sits at $98.30.

Earnings on the Horizon

Everpure is scheduled to report Q2 FY2027 results after the market close on August 26. Wall Street expects adjusted EPS of $0.58 on revenue of $1.1 billion.

In its most recent quarter, the company beat expectations, posting EPS of $0.47 against a $0.40 estimate and revenue of $1.05 billion versus the $997.88 million consensus — representing 35.2% year-over-year revenue growth.

On the insider front, company insiders have sold $25.8 million worth of stock over the past 90 days, including two director-level sales in late June. Institutional ownership remains high at 83.42%, with Goldman Sachs more than doubling its position in Q1 by acquiring an additional 595,307 shares.

Everpure has a 52-week range of $54.37 to $100.59 and a market capitalization of approximately $29.89 billion.