Will AI Infrastructure Hurdles Uncovered by ePlus' Survey Shift Its Long-Term (PLUS) Narrative?

• ePlus recently released findings from its AI Industry Pulse Poll, revealing that nearly three-quarters of organizational leaders now prioritize revenue growth as the primary driver for AI initiatives, surpassing traditional aims like cost reduction and customer satisfaction.
• An important insight is that 81% of respondents expressed concern that their IT infrastructure cannot support advanced AI applications, highlighting persistent barriers such as talent shortages and data privacy concerns.
• We'll explore how ePlus's AI survey, spotlighting IT infrastructure challenges, could influence its long-term investment outlook and business narrative.

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ePlus Investment Narrative Recap

To be a shareholder in ePlus, you have to believe in the company's ability to capture accelerating enterprise demand for AI-powered infrastructure and services, even as near-term revenue growth faces potential lumpiness due to project-based sales. The latest AI Industry Pulse Poll spotlights infrastructure and workforce headwinds, but these are not likely to materially change the current main catalyst, which remains the momentum in managed services and recurring revenue streams, nor do they fully offset the biggest risk, project-based revenue volatility. Among recent company announcements, the expansion of ePlus’s Managed Services and Enhanced Maintenance Support with Juniper Networks integration stands out. This move aligns with growing market demands for scalable, reliable AI-ready infrastructure support, directly addressing the enterprise concerns revealed in the AI survey and reinforcing managed services as a key catalyst for predictable revenue. In contrast, what investors should be aware of is the ongoing risk that large, non-recurring deals could still cause future revenue to...

Read the full narrative on ePlus (it's free!)

ePlus' outlook anticipates $2.2 billion in revenue and $78.4 million in earnings by 2028. This is based on a forecasted annual revenue decline of 0.2% and a decrease in earnings of $32.5 million from the current earnings of $110.9 million.

Uncover how ePlus' forecasts yield a $92.00 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have set fair value estimates for ePlus ranging widely from US$34.94 to US$92.00 based on two analyses. While many see varying opportunities here, lingering revenue volatility from project-based sales remains a critical factor shaping future performance, so review several outlooks to see how these might inform your view.

Explore 2 other fair value estimates on ePlus - why the stock might be worth less than half the current price!

Build Your Own ePlus Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ePlus research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free ePlus research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ePlus' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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