CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target price by $10 to $535, 30.2x our FY 25 (Aug.) EPS estimate, which is higher than the company’s 10-year historical average of 26.6x, given strong growth prospects. We increase our FY 24 adjusted EPS by $0.13 to $16.31 and reduce FY 25’s by $0.35 to $17.71. FDS reported Feb-Q adjusted EPS of $4.22 vs. $3.80 a year ago, $0.34 above consensus on revenue that came in at consensus. Top-line growth of 6% disappointed in the quarter as deceleration was identified in the Americas (+6%), EMEA (+5%), and Asia-Pacific (+5%). Additionally, user count fell modestly from the previous quarter to 206K, the first decline since Q1 20. However, we don’t see the weakness as a sign that FDS has lost its competitive edge, as the decline was related to consolidation following UBS’s acquisition of Credit Suisse. Additionally, results were impacted by a cancellation from a large wealth client that decided to move a workflow solution in-house (a move to a competitor would have been more alarming).