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Research Alert: CFRA Maintains Hold Rating On Shares Of Workday, Inc.

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target to $144, from $136, based on a P/E of 13.5x our FY 27 (Jan.) EPS projection, below its three-year average. We raise our FY 27 EPS view to $10.68 from $10.49, and lift our FY 28 EPS forecast to $12.51 from $12.26. WDAY delivered Q1 beats with subscription revenue of $2.354B, up 14.3% Y/Y. Management highlighted the best first quarter of new ACV growth in five years, though partially benefitting from slipped deals from the prior quarter. That said, AI was a driver of demand strength. We note that over 4,000 customers are using its agents, and its FlexCredit pricing model is fueling AI monetization. New ACV from Agentic AI grew over 200% Y/Y and total ARR from AI solutions is nearly $500M. The firm also launched two new agents - ITSM and Travel Agent, expanding its TAM beyond HR and Finance. Non-GAAP operating margin reached 31.8%, up from 30.2% in Q1 FY 25, and the firm raised its FY 27 operating margin guide by 50 bps to 30.5%, reflecting incremental operating discipline and efficiencies.

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Research Alert: CFRA Maintains Hold Opinion On Shares Of Target Corporation

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lift our 12-month target by $3 to $133, approximately 16x our FY 27 (Jan.) EPS estimate of $8.31 (up from $8.15; FY 28 up to $9.19 from $8.83) and in line with the company's long-term average forward P/E. TGT's Apr-Q results exceeded expectations across nearly every key metric (e.g., comp sales, margins, EPS). Yet shares declined as management adopted a more cautious tone regarding the coming quarter, citing elevated gasoline prices and subdued consumer sentiment. We would also note that retailers such as TGT may have benefited from an outsized lift in discretionary spending during Q1, supported by the larger tax refunds that many consumers received this year. Looking ahead, TGT faces more demanding comparisons in the Jul-Q as it laps prior-year Nintendo Switch 2 sales, and cost pressures from fuel and transportation could intensify. Given the company's history of execution missteps and its ongoing turnaround strategy, we believe a Hold rating remains appropriate.

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Research Alert: Cae Q4: Transformation Plan Targets Up To Cad1b Soi, Adjusted Eps Down 11% Y/y

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:CAE reported Q4 revenue of CAD1,326.7M (+4% Y/Y), bringing FY revenue to CAD4.9B (+4% Y/Y), but adjusted EPS fell to CAD0.42 from CAD0.47. Civil faced headwinds as training center utilization dropped to 70% from 74% and operating margins compressed to 18.6% from 21.5%, while Defense delivered stronger performance with margins expanding to 9.2% from 7.5%. Results reflect ongoing Civil demand challenges amid volatile macro conditions, though Defense continues benefiting from increased spending. Management guides FY 27 to low-single-digit revenue growth, 14.6%-15.1% operating margins, and EPS of CAD1.21-1.28, assuming Middle East conflicts settle early. The company announced a transformation plan targeting CAD125-150M in annual savings by FY 30, including removing 10% of commercial simulators and consolidating real estate. We expect restructuring to improve efficiency, while Defense momentum should continue supporting margin expansion despite Civil headwinds persisting.

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Research Alert: Cprt: Earnings Ahead Of Expectations; Executes Massive Buybacks

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:CPRT posted Apr-Q EPS of $0.43 vs. $0.42 (+2%), ahead of the $0.41 consensus. The beat was driven by stronger-than-expected sales and gross margins, as revenue rose 2.1% to $1.24B ($40M above consensus) and gross margin expanded 70 bps to 46.3% (70 bps above consensus). Results reflected improved service and vehicle sales revenue growth, combined with effective cost management in a challenging operating environment. During the quarter, CPRT repurchased $1.41B of stock, a sharp increase from the $218M of buybacks it had made during the prior two quarters. CPRT continues to possess one of the industry's strongest balance sheets ($4.11B of net cash) and maintains ample capacity to buy back more stock - and is authorized to do so. CPRT shares are currently trading 1% lower after hours. We view the weakness as unjustified considering its better-than-expected sales and margins. The vehicle auction market has faced significant headwinds over the last few quarters, but we found CPRT's results encouraging.

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