Technology

CFRA Maintains Strong Buy Recommendation On Servicenow Inc.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We maintain our 12-month target price at $680, on a P/E of 53x our 2024 EPS projection of $12.83 on large deal momentum and growing enterprise reach. We increase our 2023 estimate to $10.46 from $10.39 and our 2024 EPS forecast to $12.83 from $12.55. NOW posted Q3 revenue of $2.29B, above consensus estimates by $14.8M, and non-GAAP EPS of $2.92 beats by $0.37. Revenue accelerated 25% Y/Y (compared to 21% in Q3 2022) from an outperformance in Subscriptions (+27.2% Y/Y, up from 22% in Q3 2022). The company logged an exceptional number of transactions (83 in Q3, up 20% Y/Y) with ACVs above $1M, driven by an acceleration in new large customers and multi-product deals, despite a difficult economic backdrop. U.S. Federal government demand was another

CFRA Maintains Strong Buy Recommendation On Servicenow Inc. Read Post »

CFRA Maintains Hold Opinion On Shares Of IBM Corp.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our 12-month target price by $8 to $150, 15.1x our ’24 EPS estimate, a discount to peers, reflecting ongoing operational challenges. We trim our ’23 EPS estimate by $0.03 to $9.52 and lower ’24’s by $0.18 to $9.95. IBM reported Q3 operating EPS of $2.20 vs. $1.81, $0.07 above the consensus. Q3 revenue increased 4.6%, with 6% growth in software revenue on strength in both Hybrid Platform & Solutions and Transaction Processing, as well as a 5% increase in Consulting, with strong signings performance and a book-to-bill ratio greater than 1.15, partially offset by a 3% decline in Infrastructure, driven by declines in Distributed Infrastructure and Infrastructure Support. Overall results came in ahead of expectations despite clients continuing to cut back on discretionary projects in

CFRA Maintains Hold Opinion On Shares Of IBM Corp. Read Post »

CFRA Maintains Sell Recommendation On Shares Of Teradyne, Inc.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We cut our 12-month target to $70 from $87 on a P/E of 23x our 2024 EPS estimate, near peers, but below TER’s five-year average (24x) on a soft macro. We maintain our 2023 EPS estimate of $2.84, but sharply cut our 2024 estimate to $3.03 from $4.14. TER posted Q3 EPS of $0.80 (vs. $1.15 in Q3 2022), $0.07 above consensus, driven by higher-than-expected sales in its Robotics group. Within Semi Test, automotive provided strength, which we expect to continue in 2024 on increasing semi content in vehicles and structural growth in EVs. However, overall testing was broadly weaker, with areas like mobility and wireless driven lower by a weak smartphone market. We expect this headwind to fade in 2024, but are hesitant to project a

CFRA Maintains Sell Recommendation On Shares Of Teradyne, Inc. Read Post »

CFRA Maintains Sell Opinion On Shares Of F5, Inc.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We keep our 12-month target price at $125, 10.1x our FY 2024 (Sep.) EPS estimate, a discount to its three-year forward average P/E at 14.8x, reflecting our concerns of softness from service provider customers. We cut our FY 2024 EPS estimate by $0.20 to $12.40 and set FY 2025’s at $13.76. FFIV reported Sep-Q operating EPS of $3.50 vs $2.62, $0.29 above the consensus. Sep-Q revenue increased 1% with 11% growth in software revenues and a 27% increase in subscription-based revenue, offset by a 25% decline in systems, reflecting a lower level of backlog-related shipments. We remain negative on FFIV given revenue guidance for FY 2024 of flat to down mid-single digits as customers remain cautious with spending levels for the foreseeable future and the company undergoes

CFRA Maintains Sell Opinion On Shares Of F5, Inc. Read Post »

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