ePlus Positioned for Growth: Strong Recovery and AI-Driven Opportunities

William Blair analyst Maggie Nolan has maintained their bullish stance on PLUS stock, giving a Buy rating on September 27.

Maggie Nolan’s rating is based on several key factors that highlight ePlus’s potential for growth and value creation. The company has demonstrated a strong recovery in its top-line growth, achieving a 19% year-over-year increase in the last quarter, which indicates a positive turnaround after a period of slowed growth due to pandemic-related factors. This resurgence in growth is supported by management’s guidance for upper-single-digit revenue growth in fiscal 2026, driven by increasing demand in major enterprise accounts and key sectors such as networking, cloud, and generative AI. The management’s confidence in achieving these estimates suggests a solid foundation for future performance.
Furthermore, ePlus is well-positioned to capitalize on the growing demand for AI-driven infrastructure modernization. The company is experiencing an increase in AI-related demand, which is expected to be a significant driver of future growth. EPlus’s AI briefing centers play a crucial role in helping clients validate use-cases and security, leading to larger engagements. Despite longer sales cycles for AI projects, the company’s pipeline is building steadily, and management maintains a conservative guidance approach, indicating that large AI deals are not necessary to meet growth targets. Additionally, ePlus’s shareholder-friendly capital allocation strategy, which includes strategic acquisitions and organic growth investments, further supports its potential for sustained growth and value creation.

Nolan covers the Technology sector, focusing on stocks such as Eplus, Accenture, and Magic. According to TipRanks, Nolan has an average return of -3.7% and a 43.24% success rate on recommended stocks.

In another report released on September 27, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $78.00 price target.