12:50 AM EDT, 05/13/2024 (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 raise our 12-month target price by $10 to $140, applying an EV/revenue multiple of 4.0x to our FY 25 (Jun.) estimate, a discount to its 10-year historical average multiple at 7.1x, reflecting our concerns over demand. We trim our FY 24 EPS estimate by $0.33 to $5.87 and lower FY 25's by $0.04 to $7.74. UI reported Mar-Q operating EPS of $1.28 vs $1.65, in line with the consensus. Mar-Q revenue increased 7.7%, driven by 10.9% growth in its Enterprise Technology segment, partially offset by a 6.6% decline in its Service Provider Technology segment. Gross margin fell 5.9% to 35.5%, driven by incremental excess and obsolete inventory charges, unfavorable product mix, and higher shipping costs, partially offset by lower tariffs. We expect service provider spending will remain weak, as customers slow investment in 5G networks and work through excess inventory.