Shares of Everpure Inc (NYSE:P) (formerly Pure Storage) tanked on Thursday, despite the company reporting upbeat first-quarter results.

Here are the key analyst insights:

  • Guggenheim Securities analyst Howard Ma maintained a Buy rating, while raising the price target from $105 to $115.
  • Wedbush analyst Matt Bryson reiterated an Outperform rating, while lifting the price target from $100 to $105.

Check out other analyst stock ratings.

Guggenheim Securities: Everpure's total revenue climbed 35% year-on-year to $1.053 billion, beating consensus of $1.003 billion, driven by product revenue growing 55% and subscription services revenue up 17%, Ma said in a note.

Management indicated that the revenue outperformance was driven by "broad-based strength across all business segments and geographies," with price hikes and customer pull-forward representing nearly a third of the quarter's revenue growth, he added.

The analyst estimates new ACV (annual contract value) bookings to have grown by 80% year-on-year, a significant acceleration from the previous quarter's 23%, and representing much higher dollars added year-on-year. He noted three positives:

  • Hyperscaler shipments are likely to ramp in the second half of the fiscal year.
  • Another hyperscaler deal may come in sooner than previously anticipated.
  • CEO Charlie Giancarlo indicated that the company would sell "every TB of NAND" it could source.

Wedbush: Everpure reported solid results, with sales coming in better than typical seasonality, Bryson said. Management’s outlook for the back half is flat with their prior guidance, "despite what appears to be an enterprise IT environment buoyed by significant tailwinds," he wrote.

The company's second-quarter guidance is also disappointing given the underlying industry conditions, the analyst stated. Everpure guided to just 5% sequential growth despite a price hike Bryson believes is close to 50%, while its outlook for the back half implies only mid-teens sales growth even as pricing rises more than 70%.

P Price Action: Everpure shares were down 14.64% at $73.19 at the time of publication on Thursday, according to Benzinga Pro data.

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