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Research Alert: Earnings Preview: CFRA Maintains Buy Opinion On Shares Of Broadcom

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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 12-month target price to $525 from $428, on P/E of about 28x our CY 27 EPS view. We keep our FY 26 EPS at $11.46 but raise FY 27 to $18.66 from $16.20. AVGO is set to report Apr-Q results after the close on 6/3. We see revenue of $22.1B (+47.5%) and EPS of $2.40, on 76% growth in semiconductors (2/3 of revenue) and 9% in Software. All eyes will be on AI revenue, seen at $10.7B (+140% Y/Y; 72% of semi sales) and now nearly half of total revenue, as custom ASIC/XPU shipments to Alphabet, Meta, and others accelerate alongside networking solutions featuring Tomahawk 6 Ethernet switches. We believe AVGO is gaining share as customers increasingly select custom silicon for workload optimization. We see gross margin largely stable at 77% and a 68% adjusted EBITDA margin. Our focus will center on AVGO's outlook, as investors look for a big step up in sales for the Jul-Q (sales of $28.5B or +79% Y/Y), along with prior commentary that cited an ambitious $100B cumulative AI chip revenue target through 2027.

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:PANW reported Q3 non-GAAP EPS of $0.85, beating consensus by $0.05, while revenue of $3.0B grew 31% Y/Y, exceeding projections by $60M. Results include $388M from CyberArk and Chronosphere acquisitions, with subscription revenue reaching $2.408B (+31% Y/Y) and product revenue of $594M (+31% Y/Y). Next-Generation Security (NGS) ARR growth accelerated significantly to 60% Y/Y, reaching $8.1B, marking substantial acceleration from 33% growth in Q2, driven by customers securing AI deployments at scale and strong platformization momentum. Management raised FY 26 revenue guidance to $11.415B-$11.425B (24% growth) and NGS ARR guidance to $8.90B-$8.95B (59%-60% growth), with non-GAAP EPS expectations of $3.77-$3.79 exceeding Street projections of $3.69. Cash flow generation remained robust, with trailing 12-month adjusted FCF margin of 38.5% (+430 bps Y/Y), keeping the company firmly on track toward its 40% FCF margin target by FY 28, reflecting scalability of the platform model.

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Research Alert: Key Takeaways From Microsoft Build Developer's Conference

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:MSFT CEO Satya Nadella delivered his keynote at Build Conference, introducing 7 new MAI models led by MAI-Thinking-1 with 35B parameters for complex instructions and code generation. The event progressed as expected after reported leaks, demonstrating internal AI tool development for enterprise ecosystem. We view this strategic shift toward in-house models as positive for reducing MSFT's dependence on third-party providers like OpenAI, with models integrated into PowerPoint and OneDrive. Central to MSFT's vision is agentic AI executing tasks autonomously, unveiling Autopilots with Microsoft Scout as flagship always-on assistant across Microsoft 365. The company introduced Microsoft IQ, now available across GitHub Copilot and Copilot Studio, serving as context layer with components including Work IQ and Web IQ. We believe quantum computing progress is encouraging, with Majorana 2 chip achieving 20-second qubit lifetimes and cutting MSFT's scalable quantum computing timeline in half to 2029.

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Research Alert: CFRA Keeps Hold Opinion On Shares Of Dollar General 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 to $123 from $151, based on ~17x our FY 27 (Jan.) EPS estimate of $7.25 (raised from $7.21). Our FY 28 EPS estimate is lowered to $7.84 from $7.88. This compares with the stock's long-term average forward P/E of 18x. Despite a solid Apr-Q EPS beat and an increase to full-year EPS guidance, we maintain our Hold rating, as we see elevated risk in the back half of the year. Key concerns include ongoing pressure on low-income consumer spending, potential freight and fuel cost headwinds, and intensifying competition as peers increasingly lean on targeted promotions to drive value perception. We also note that the company's higher full-year EPS outlook was supported in part by a lower effective tax rate and better-than-expected Apr-Q results, suggesting the underlying operating outlook for the remainder of the year is largely unchanged. Comps also become more challenging in upcoming quarters, particularly on the gross margin line.

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