-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our target price to $35 from $44 on a forward P/E of 13x our 2026 EPS forecast of $2.66, below its five-year average. We increase our 2026 EPS projection to $2.66 from $2.60, and lift our 2027 EPS estimate to $2.89 from $2.74. Total revenue grew 6% Y/Y to $444 million (4% in constant currency), driven by stronger-than-expected recurring revenue of $400 million, up 12% Y/Y (9% in constant currency), from higher upfront on-premise subscription term licenses. Total ARR increased 3.5% to $1.492 billion, while public cloud ARR grew 13% to $686 million, supported by solid retention rates and accelerating demand for hybrid capabilities driven by security and sovereign AI requirements. Q1 results continue to show recovery, and we remain optimistic on its AI opportunity and core ARR growth from new offerings, improved go-to-market execution, and resonance of its hybrid deployment model for customers scaling their AI use. Margin expansion is also a positive, although higher memory prices are a watch area.