07:45 AM EST, 12/12/2025 (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 $428 from $380, on a P/E of 31x our CY 27 EPS. After the company posted Oct-Q results and guidance that were ahead of our views, we raise our FY 26 (Oct.) EPS estimate to $9.91 from $9.00 and FY 27 to $13.66 from $10.95. Despite the beat, we think shares are trading lower after the company alluded to a $73B AI semi pipeline (about $20B for networking and the rest for XPUs) that will be realized over the next six quarters, with investors likely hoping for more. We believe this is a base case, with upside potential as more orders flow through. A lower gross margin guide is no surprise, as AI rack scale revenue ramps in CY 26, but is positive for overall profitability. We see AI XPU shipments supported by its three key hyperscale customers (Alphabet, Meta Platforms, and ByteDance) along with a fourth in Anthropic (placed a follow on $11B order in Oct-Q) and a fifth in OpenAI (more of a CY 27 ramp). We like FCF potential of $43B+ in FY 26 and $58B+ in FY 27 (up from $27B in FY 25).