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Research
Research Alert: CFRA Maintains Buy Rating On Flex Ltd.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month target from $86 to $156, on a P/E of 25x our FY 28 estimate, above the three-year historical average of 14x to reflect the explosive CPI growth tied to AI infrastructure and margin execution a full year ahead of schedule. After posting a strong Q4 FY 26 and blowout FY 27 guidance, we lift our FY 27 EPS from $3.90 to $4.21 and initiate FY 28's at $6.24. FLEX guided for FY 27 revenue growth of 18% Y/Y, well ahead of the consensus view of 7%, due to CPI segment guidance of 65%-75% growth. We like the strategic separation creating two distinct investment profiles, with SpinCo as a pure-play AI infrastructure growth vehicle and RemainCo as a margin-focused advanced manufacturing business. CPI's grid-to-chip integrated solution addresses critical data center power bottlenecks, underpinned by multiyear hyperscaler contracts and a fully-booked backlog supporting $10B+. While FLEX faces elevated capex in FY 27, we see continued strong cash generation providing flexibility.
$FLEX
Research
Research Alert: CFRA Keeps Hold Opinion On Shares Of Pinnacle West Capital Corporation
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target by $2 to $103, 18.5x our 2027 EPS view, slightly above peers as we see highly supportive economic trends in PNW's service territory. We lift our 2026 EPS view by $0.04 to $4.73 and lower 2027 EPS by $0.25 to $5.58. For the full year, higher interest costs and share dilution are expected to be offset by continued strength in transmission investment returns, retail electricity sales growth, and disciplined expense management. Along with strong population and job growth, we think growing demand from data centers and semiconductor manufacturing present strong long-term growth opportunities for the company. From 2025 to 2028, we anticipate dividend growth will be 3.4% on a compounded annual basis, well below our expectations for peers. We expect a dividend payout ratio near 78.5% in 2026, well above peer levels. However, we anticipate that the payout ratio will moderate somewhat as EPS growth outpaces dividend growth over time.
$PNW
Sectors
Sector Update: Tech
Tech stocks were lower Thursday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) decreasing 0.1% and the State Street SPDR S&P Semiconductor ETF (XSD) falling 1.5%.The Philadelphia Semiconductor index dropped 2.6%.In corporate news, Snap's (SNAP) Q1 loss narrowed more than market expectations, although the social media company saw persistent headwinds in its North America advertising business and recorded up to $25 million impact from the Middle East conflict. Its shares were down 2%.
$SNAP