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 $35 to $545, 30.2x our FY 25 (Aug.) EPS estimate, which is higher than the company’s 10-year historical average of 26.4x, given strong growth prospects. We lower our FY 24 adjusted EPS by $0.17 to $16.18 and reduce FY 25’s by $0.07 to $18.06. FDS reported Nov-Q adjusted EPS of $4.12 vs. $3.99, $0.01 above consensus on revenue that came in at consensus. Top-line growth of 7% was led by acceleration in the Americas (+8%), while deceleration was identified in EMEA (+7%) and Asia-Pacific (+7%). However, this was accompanied by an 8% increase in employee costs and 70 bps of adjusted operating margin compression to 37.6%. User retention remained unchanged at a healthy 95%. We continue to believe FDS offers a differentiated sought-after product, and we point to FDS’s user count (+14%) as evidence of market share gains in a tough period in which the buy-side is looking to manage costs. Still, given a slower-than-anticipated 1H 2024, management reduced its revenue and EPS guidance.