12:55 AM EDT, 05/29/2025 (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 keep our 12-month target price at $165, based on a P/E of 30x our CY 26 EPS view, above peers but well below historical, to reflect our view of superior FCF potential (+$100B run rate exiting CY 25) partly offset by decelerating growth due to the sheer law of numbers. After posting mixed Apr-Q results, we adjust our FY 26 (Jan.) EPS estimate to $4.23 from $4.44, reflecting the full write-down of the H20, and keep FY 27 at $5.50. We come away more optimistic around the NVDA story, as greater momentum for reasoning models/AI Agents is driving exponential growth for compute while new emerging Sovereign AI opportunities create new revenue streams. In addition, we think an improving supply situation will support higher revenue potential in the 2H while NVDA has thrown the kitchen sink on expected China revenue ($8B missed opportunity seen in the Jul-Q), largely derisking its exposure in the region. We see the potential for NVDA to return into China later this year while likely margin expansion offers EPS upside.