12:50 AM EDT, 05/21/2024 (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 up our 12-month target to $1,100 from $1,000, on a P/E of 35x our CY 25 EPS view, above peers but below historical given our view of improving FCF (+$55B in FY 25 and +$70B in FY 26). We up our FY 25 (Jan.) EPS estimate to $25.47 from $25.00 and FY 26's to $31.62 from $31.25. Ahead of Apr-Q results on 5/22, we look for EPS of $5.64 on revenue of $24.6B (+242% Y/Y). We see upside to data center assumptions ($21.1B; up 395% Y/Y and 86% of revenue), driven by higher cloud capex spend and greater enterprise GenAI adoption. We believe NVDA's content growth story has more room to go driven by ongoing shift toward AI servers, early days for CPU expansion, and addressable market upside tied to new software applications/greater focus on energy efficiency/TCO benefits. Concerns that seem unwarranted include order softness ahead of Blackwell (happens ahead of new product ramps; H200 boost), peak gross margins (77% in Apr-Q but should sustain mid-70's), competitive pressures, and potentially more China restrictions.