Everpure has been one of the stronger storage names tied to the data-center buildout, and Bank of America thinks investors may still be underestimating how much runway the company has left.

In a note given to TheStreet, Bank of America reiterated its Buy rating on Everpure (P) and maintained a $150 price objective. Based on the $93.78 share price used in the note, the target represents about 60% upside.

The analyst team’s case centers on a large and expanding market across hyperscale, neocloud, and enterprise customers. BofA estimates Everpure could address 259 exabytes of storage capacity by 2030, with hyperscalers accounting for 195 exabytes of that opportunity.

Bank of America sees a much bigger opportunity

BofA’s model suggests the total dollar opportunity available to Everpure could reach roughly $39 billion by 2030. The bank sees hyperscale as the biggest driver, with the company positioned to take share from both hard-disk drives and traditional solid-state drives as customers look for more efficient storage architectures.

That thesis lines up with Everpure’s recent operating momentum. The company reported fiscal second-quarter revenue of $1.19 billion, up 38% from a year earlier, while product revenue climbed 54% to $687 million.

Subscription annual recurring revenue reached $2.1 billion, up 20%, while remaining performance obligations increased 44% to $4.1 billion.

Everpure also raised its fiscal 2027 revenue outlook to between $5.03 billion and $5.07 billion, which would represent growth of roughly 37% to 38%.

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Everpure’s hyperscale push has also moved beyond a single customer. The company announced in August that it had secured a design win and supply agreement with a second top-five hyperscaler, building on its first major hyperscale win from late 2024.

Everpure says its DirectFlash architecture can help hyperscale customers reduce operating costs while freeing up power and rack space, two resources that have become increasingly important as AI workloads expand.

BofA expects that opportunity to translate into stronger margins as well. The analysts argue that hyperscale revenue can carry high incremental margins because costs should not rise at the same pace as revenue as deployments scale.

The bank’s more bullish scenario goes well beyond its current base estimates. Under that model, Everpure’s total revenue could rise from about $3.7 billion in fiscal 2025 to more than $12.4 billion by fiscal 2030, driven by faster adoption across hyperscale, neocloud, and enterprise markets.

Bank of America reiterated its Buy rating on Everpure (P) and maintained a $150 price objective.

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Investor day could be the next catalyst

Investors may not have to wait long for another update. Everpure is scheduled to hold its Financial Analyst Meeting on Sept. 23, where management plans to discuss its long-term strategy, path to growth, and long-term financial framework. That event could give investors a clearer picture of how management sees hyperscale growth developing over the next several years.

The company has already gained another high-profile milestone ahead of that meeting. Everpure said Sept. 8 that it will join the S&P 500 before the market opens on Sept. 21, adding another sign of how quickly the company’s market profile has changed alongside its recent growth.

There are still risks to the bull case. Everpure said in its latest quarterly filing that higher component pricing weighed on product gross margin, while the company has also warned that a hyperscale design win does not guarantee meaningful future revenue.

It expects component pricing volatility to continue through the rest of fiscal 2027, which could pressure margins if costs stay elevated.

BofA nevertheless sees the storage market moving in Everpure’s favor over time. If the company can keep winning hyperscale business while expanding margins and maintaining enterprise growth, the bank’s $150 target leaves substantial room above the price level used in the note.

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