Everpure shares fell about 10% on Thursday amid concerns over margins and negative free cash flow in its fiscal second quarter, even as BofA upgraded the stock to Buy from Neutral with a price objective of $150, up from $90. The company reported total gross margin of 69.9%, with product gross margin at 66.2%, within its long-term range of 65% to 70%, and subscription services margin at 74.9%. Free cash flow was negative $238 million in the quarter, but management expects fiscal 2027 free cash flow between $600 million and $800 million. UBS reiterated its Sell rating with a price target increase to $80 from $70, while Oppenheimer, Needham, Morgan Stanley, and Wedbush all maintained positive ratings with price targets ranging from $119 to $140. Everpure's second-quarter revenue and adjusted EPS beat estimates, and the company raised its fiscal 2027 outlook.
Everpure, Inc.Shares fell on margin and negative free cash flow concerns despite Q2 beat and raised outlook.
