-- 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 price target by $3 to $76, based on 27x our 2026 EPS estimate, a discount to shares' 30x five-year average forward multiple. We raise our 2026 EPS estimate from $2.69 to $2.83 and 2027's from $2.82 to $2.89. Q1 2026 results included strong subscriber growth to 13.1M (+12.2% Y/Y), adding 310K new subscribers while also growing 2.4% to $9.77. Advertising revenue grew 32% to $93.3M, a significant acceleration from 2025. While this was encouraging, the company expects advertising revenue growth to decelerate to a high-teens percentage range. This has had a material impact on operating margins (Q1 margins expanded 200 bps Y/Y). Additionally, the key investor concern remains on growing average revenue per user while supporting subscriber acquisition momentum. We maintain our Sell rating primarily on valuation, as we think shares fully reflect ongoing momentum in subscriber growth and price in a more durable growth trajectory on historically cyclical ad revenues.