12:50 AM EDT, 04/19/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our target price to USD155 (from USD140), now valuing the stock at 20x 2025 P/E (from 23x 2024 P/E), with the valuation year pushout reflecting the market's increasing focus on TSM's long-term earnings growth potential. Q1 2024's earnings came in within our expectations with earnings per ADS (EPADS) of TWD43.50 (+9% Y/Y, -6% Q/Q due mostly to smartphone seasonality) and revenue of TWD592 mln (+17% Y/Y, -5% Q/Q). TSM highlighted several near-term profitability headwinds ahead, including (i) a slight 0.5%-pts gross margin impact in Q2 2024 from the April 3rd earthquake; (ii) +25% electricity cost from April 1st; and (iii) margin dilution from 3nm ramp-up. Consequently, we cut our 2025 EPADS forecast to TWD184.33 (from TWD192.89) in 2024 but raise 2025's to TWD251.47 (from TWD241.66) as we upgrade our revenue assumptions mainly for leading-edge nodes. We continue to like TSM given its growing AI exposure, dominant market share at leading-edge, and resilient balance sheet/FCF to support future investments.