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 to $412 from $355 on a P/E of 36x, below its 3-year historical average using our 2024 EPS view. We increase our 2023 EPS forecast to $10.95 from $10.05 and 2024 EPS estimate to $11.45 from $11.07. IT posted revenue of $1.4B for Q3, above consensus by $10M, and non-GAAP EPS of $2.56 beats by $0.60. Modest sales growth of 5.8% Y/Y was the result of continued pressures to demand and tough comparisons from the prior year – Research revenue was up 6% Y/Y from decelerating contract value growth (GTS +3.4% Y/Y, GBS +7.1% Y/Y), and slight contractions in wallet and retention rates. This was offset by outperformance in Consulting (+24.1% Y/Y, vs 12/6% Y/Y in Q3 2022). However, the share price is up significantly from IT’s guidance uplift – IT increased its 2023 revenue growth outlook by 70 bps and adjusted EPS by $0.90, implying a strong Q4, from greater stability in its non-subscription research sales, strength in consulting, and tight expense controls.