Technology

CFRA Maintains Buy Recommendation On Shares Of Kla Corporation

/ / Technology /

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 target by $115 to $755, 25x our CY 2025 EPS view, near peers but above KLAC’s three-year average (~18x) on its favorable exposure to AI and early signs of improvement across the semiconductor industry. We maintain our FY 2024 EPS estimate at $23.30, raise FY 2025’s by $0.99 to $27.29, and lift FY 2026’s by $1.71 to $32.70, boosted by the introduction of High NA EUV systems in 2025 and 2026 to support the continued push toward more advanced nodes. AI applications are driving new node investments, benefiting KLAC across multiple product lines. In our view, the semi-cap equipment market is getting more expensive, and we expect price movement from here to be driven more by earnings than by further multiple expansion; however, we […]

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Apple’s iPhone Business Has Been Sluggish, but Here’s the Good News

/ / Technology /

Apple continues to win market share of both units and revenue, says BofA – and the company even has an opportunity with buyers of used smartphones Apple Inc. likely saw declining iPhone unit shipments over the last three years, but a BofA Securities analyst sees some silver linings. The smartphone giant continues to win market share in terms of both industry revenue and units, in the view of BofA’s Wamsi Mohan. Additionally, Apple (AAPL) is having success in convincing people to pay for higher-priced iPhone models, a trend Mohan thinks could persist – and help to outweigh overall pressures in the company’s China business. “We continue to see Apple ship more high-value units over time and thereby continue to take revenue share,” Mohan wrote. The company commands almost the entire market of devices that sell for at least $1,000, he added. Used iPhones are becoming a greater portion of Apple’s

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Oracle’s Quarterly Remaining Performance Obligation Metric ‘Impressive,’ Morgan Stanley Says

/ / Technology /

Oracle (ORCL.US) growth in remaining performance obligations, or RPO, in its fiscal third quarter was “impressive,” though investors will likely be focused on the durability of that growth, Morgan Stanley said Tuesday. The software maker’s total RPO surged 29% to an all-time high of more than $80 billion in the quarter, driven by “large new cloud infrastructure contracts,” Chief Executive Safra Catz said late Monday. Adjusted earnings rose to $1.41 a share in the three months ended Feb. 29 from $1.22 a year earlier, higher than the Capital IQ-polled consensus of $1.38. Revenue grew 7% to $13.28 billion, but missed Wall Street’s $13.29 billion view. The third-quarter RPO represented a $15 billion sequential gain following a $500 million growth in the prior quarter, Morgan Stanley said in a note. “While undoubtedly an impressive RPO result for the quarter, the key question for investors likely turns to the durability of that

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CFRA Maintains Hold Recommendation On Shares Of Oracle Corporation

/ / Technology /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We increase our 12-month target to $142 from $130, on a higher revised P/E of 21x our CY 25 EPS estimate of $6.75, above historical but below peers. We raise our FY 24 (May) EPS to $5.59 from $5.54 and keep FY 25 at $6.29. ORCL posts Feb-Q EPS of $1.41 vs. $1.22, beating the $1.38 consensus. Sales rose 7%, near expectations, led by 12% growth from cloud services and license support (75% of sales), which more than offset legacy declines. We positively view stabilization in cloud services growth (+25%) after recent deceleration, with Infrastructure-as-a-Service (IaaS) rising 49% and cloud applications (SaaS) up 14%. Despite ORCL’s leveraged financial position (net debt of $78B) and need to boost capex ($10B seen in FY 25 from $7.5B projected in

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Nvidia, Tesla, Apple And Other Stocks Grossly Undervalued? JPMorgan Analyst Says Magnificent Seven ‘Currently Trading Less Stretched Than A Few Years Ago’

/ / Technology /

Despite ongoing apprehensions surrounding an AI bubble burst, the Magnificent Seven tech stocks appear undervalued when compared to the wider stock market, according to JPMorgan. What Happened: JPMorgan analysts have indicated that the mega-cap stocks, despite their strong performance, retain reasonable valuations relative to the average prices of the S&P 500 over the last five years, reported Business Insider. The ‘Magnificent Seven’ — Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon.com Inc (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Meta Platforms Inc (NASDAQ:META), Microsoft Corp (NASDAQ:MSFT), NVIDIA Corp (NASDAQ:NVDA), and Tesla Inc (NASDAQ:TSLA) — make up almost 30% of the S&P 500 market cap. “The group is currently trading less stretched than a few years ago, given earnings delivery,” the analysts stated. They further noted that these stocks could outperform traditional cyclicals in the face of general earnings disappointment. Despite the ‘Magnificent Seven’ witnessing a 27% increase in net income growth in 2023, JPMorgan conceded that the narrow market leadership is “ultimately unhealthy.” Why It Matters: This analysis comes amid a speculated end

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CFRA Maintains Hold Opinion On Shares Of Docusign, Inc.

/ / Technology /

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 $5 to $65, applying an EV/sales multiple of 4.2x to our FY 2025 (Jan.) estimate, a slight premium to peers, reflecting its dominant market share position. We raise our FY 2025 EPS estimate by $0.39 to $3.25 and set FY 2026’s at $3.48. DOCU reported Jan-Q operating EPS of $0.76 vs. $0.65, $0.11 above the consensus. Jan-Q revenue increased 8%, with 8% growth in subscription and a 13% increase in billings, driven by solid execution around renewals, especially with large customers. Net dollar retention continued to trend down to 89%, which we expect to continue into FY 2025 but at a moderating pace. While DOCU continues to face a number of headwinds, we are encouraged by Jan-Q results, as well

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Adobe Poised for ‘Solid’ Fiscal Q1 Results, RBC Says

/ / Technology /

Adobe Systems (ADBE) is likely to post “solid” fiscal Q1 results with an upside to digital media annualized recurring revenue, RBC Capital Markets said in a note e-mailed on Monday. The software maker is scheduled to report fiscal Q1 results on Thursday. RBC projects non-GAAP earnings at $4.36 per share on revenue of about $5.13 billion. “While results should be positive, sentiment remains on the drivers of the results, specifically the incremental benefit from GenAI models and runway for future model rollouts particularly video, which has become a growing topic of investor interest following competitive product launches,” RBC analysts, including Matthew Swanson, said. The brokerage maintained its outperform rating on the stock, with a price target of $650.

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